On January 1, 2023, Ivanhoe Corporation purchased a newly issued $1,225,000 bond. The bond matured on December 31, 2025, and paid interest at 6% every June 30 and December 31. The market interest rate was 8%. Ivanhoe's fiscal year-end is October 31, and the company had the intention and ability to hold the bond until its maturity date. The bond will be accounted using the amortized cost model. Prepare the journal entries on the books of Ivanhoe Corporation for each of the following dates. January 1, 2023, June 30, 2023, October 31, 2023, December 31, 2023, December 31, 2025 (two entries) one for interest and one for maturity of bond
On January 1,2023, Ivanhoe Corporation purchased a newly issued $1.225,000 bond, The bond matured on December 31,2025 , and psid interest at 6% every fune 30 and December 31 . The market interest rate was 8%. Ivanhoe's fiseal year-end is October 31 , and the company had the intention and ability to hold the bond until its maturity date. The bond will be accounted using the amortized cost model. Cick here to view Table A2 2-PRESENT VALUE OF 1- (PRESENT VALUE OF A SINGLE SUM) Click here to view Table A.4 - PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 (a) Youranswer is correct. Calculate the price paid for the bond using a financial calculator or Excel functions, (Round answers to 2 decimal places, e.g. 52.75.) Prepare an amortization schedule for the bond. (Round answers to 2 decimal places, e.g. 52.75.) Prepare the journal entries on the books of Ivanhoe Corporation for each of the following dates, (Round answers to 2 decimal places, es. 52.75. Credit account titles are automatically indented when the amount is entered. Do not indent mantolly. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record entries in the order displayed in the problem statement. List all debit entries before credit entries.) - January 1,2023 - June 30,2023 - October 31,2023 - December 31,2023 - December 31,2025 (two entries) one for interest and one for maturity of bond Date Account Titles and Explanation sin1,2023 June 30,2023 : June 30,2023 ; Oct. 32, 2023 Dec 31,2023 Debit Credit FV-NI investments Cash Interest Receivable Bond investment at Amortized Cost Interest Income I Dec.31:2023: : Dec 31,2025 : Cash Bond Imvestment at Amortized Cost Interest Receivable Interest Income (To record collection of interest.) Dec. 31.2025 : (To record maturity of bond)