Question
On January 2, 2021 Albert Company issued 3 year, 7% bonds with a face value of $1,000,000. The bonds issued for $948,421 and pay interest
On January 2, 2021 Albert Company issued 3 year, 7% bonds with a face value of $1,000,000. The bonds issued for $948,421 and pay interest semi-annually each June 30 and December 31. The effective rate of interest was 9%. Leroy Company purchased 20% of the bond issue and properly classified the investment as HTM.
Leroys journal entries
1. Purchase on 01/02/2021
2. Show the amortization table.
| Date | Interest payment | Interest revenue | Amortized | Carrying value |
| 01/02/21 | ||||
| 06/30/21 | ||||
| 12/31/21 | ||||
| 06/30/22 | ||||
| 12/31/22 | ||||
| 06/30/23 | ||||
| 12/31/23 |
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Management And Cost Accounting
Authors: Colin Drury
5th Edition
1861525362, 978-1861525369
