On January 1, 2024, Ithaca Corporation purchases Cortiand Incorporated bonds that have a face value of $330,000. The Cortiand bonds have a stated interest rate of 5%. Interest is paid semiannually on June 30 and December 31 , and the bonds mature in 10 years For bonds of similar risk and maturity, the market yield on particular dates is as follows: Note: Use tables, Excel, or a financial calculater. (FV of \$1. PV of S1, FVA of S1. PVA of S1, EVAD of \$1 and PVAD of S1) Required: 1-a. Colculate the price ithaca would have paid for the Cortland bonds on January 1, 2024 (ignoring brokerage fees) 1.b. Prepare a joumal entry to record the purchase 2. Prepare all appropriate journal entries related to the bond investment during 2024 , assuming ithaca accounts for the bonds as a held-to-maturty invertment. ithoca calculates interest revenue at the effective interest rate as of the date it purchased the bonds. 3. Prepure all appropriate joumal entries related to the bond investment during 2024 , assuming that ithaca chose the fair value option when the bonds were purchased, and that ithaca determines fair value of the bonds semiannualiy. Ithaca calculates interest revenue at the effective interest rate as of the date it purchased the bonds. Complete this question by entering your answers in the tabs below. Prepare a journal entry to record the purchase. Notes if no entry is required for a transaction/event, Select "No journal antry required" in the first account field, Do not roond your intermediate salcalations and round your final answers to nearest whole numbera On January 1, 2024, Ithaca Corporation purchases Cortland Incorporated bonds that have a face value of $330,000. The Cortland bonds have a stated interest rate of 5%. Interest is paid semiannually on June 30 and December 31 , and the bonds mature in 10 years. For bonds of similar risk and maturity, the market yieid on particular dates is as follows: Note: Use tables, Excel, or a financial calculator. (FV of \$1. PV of \$1. FVA of S1. PVA of \$1, FVAD of \$1 and PVAD of S1) Required: 1-a. Calculate the price ithaca would have paid for the Cortiand bonds on January 1, 2024 (ignoring brokerage fees). 1-b. Prepare a journal entry to record the purchase. 2. Prepare all appropriate journal entries related to the bond investment during 2024 , assuming lthaca accounts for the bonds as a held-to-maturity investment ithaca calculates interest revenue at the effective interest rate as of the date it purchased the bonds 3. Prepare all appropriate journal entries related to the bond investment during 2024, assuming that ithaca chose the fair value option when the bonds were purchased, and that lthaca determines fair value of the bonds semiannually ithaca calculates interest revenue at the effective interest rate as of the date it purchased the bonds Complete this question by entering your answers in the tabs below. Calculate the price Ithaca would have paid for the Cortland bonds on January 1, 2024 (ignoring brokerage fees) Note; Do not round your intermediate calculations and round your final answer to nearest whole number. Prepare a journal entry to record the purchase. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not intermediate calculations and round your final answers to nearest whole number. Journal entry worksheet Record the purchase of Cortland bonds on January 1, 2024. Note: Enter debits before credits When the bonds were purchased, and that ithaca determines fair value of the bonds semiannually ithaca calculates interest revenue at the effective interest rate as of the date it purchased the bonds. Complete this question by entering your answers in the tabs below. Prepare all appropriate fournal entries related to the bond imvestment during 2024, assuming Ithaca accounts for the bonds as a held-tomaturity investment. Ithaca calculates interest revenue at the effective interest rate as of the date it purchased the bonds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations and round your final answers to nearest whole number. Shovelnts. Journal entry worksheet 2 5 Record the investment in bonds with a face value of $330,000, a stated interest rate of 5% and a market yield of 11%. The bonds pay interest semiannually. Notr fotim detins belorecretit: Prepare all appropriate journal entries related to the bond investment during 2024 , assuming that Ithaca chose the fair value option when the bonds were purchased, and that Ithaca determines fair value of the bonds semiannually, Ithaca calculates interest revenue at the effective interest rate as of the date it purchased the bonds. Note: If no entry is required for a transactionvevent, select "No journal entry required" in the first account field. Do not round your intermediate calculations and round your final answers to nearest whole number. Journal entry worksheet 5 Record the investment in bonds with a face value of $330,000, a stated interest rate of 5% and a market yield of 11%. The bonds pay interest semiannually. Noter Intertefelits befare credits
