Question
On July 1, 2018, TRES Company purchased an 8-yr, 12% bonds with a face value of 4,875,000 at 102 plus accrued interest to be recognized
On July 1, 2018, TRES Company purchased an 8-yr, 12% bonds with a face value of 4,875,000 at 102 plus accrued interest to be recognized at amortized cost. The bonds mature on June 30, 2022 and pay interest semi-annually on April 1 and October 1.
1. How much should be reported as interest receivable as of December 31, 2019?
2. How much is the cash received upon acquisition?
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Essentials Of Internal Auditing CIA Part 1 2021
Authors: Muhammad Zain
1st Edition
B09B36MRH2, 979-8542949130
