Question
on January 1st, 2013, hi and Lois company purchased 13% bonds having a maturity value of $312,900 for 336 thousand and $28.63. the bonds provide
on January 1st, 2013, hi and Lois company purchased 13% bonds having a maturity value of $312,900 for 336 thousand and $28.63. the bonds provide the bondholders with 11% yield. They are dated January 1st, 2013, and mature January 1st, 2018, with interest receivable December 31st of each year. Hi and Lois company uses the effective interest method to allocate unamortized discount or premium. The bonds are classified in the held to maturity category. a. prepare the journal entry at the date of the bond-purchase. January 1st 2013 there are two entries. B. prepare a bond amortization schedule. On 1/1/13 , 1231 13, 1231 14, 12 3115, 1231 16, and 12 3117. C. prepare the journal entry to record the interest received and amortization for 2013. there are three entries. d. prepare the journal entry to record the interest received and the amortization for 2014 there are three entries
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