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On July 1, 2020, West Company purchased for cash, four 510,000 bonds of North Corporation at a market rate of 6%. The bonds pay 5%

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On July 1, 2020, West Company purchased for cash, four 510,000 bonds of North Corporation at a market rate of 6%. The bonds pay 5% interest, payable on a semiannual basis each July 1 and January 1, and mature on July 1, 2023. The bonds are classified as trading securities. The annual reporting period ends December 31. Assume the effective interest method of amortization of any discounts or premiums. Ignore income taxes, Amortization Schedule Journal Entries in 2029 Journal Entries in 2021 b. Record the entry for the purchase of the bonds by West Company on July 1, 2020. c. Record the adjusting entries by West Company on December 31, 2020 to accrue interest revenue and record the unrealized gain or loss. The fair value of the bonds on December 31, 2020, was 541,500. Note: List multiple debits or credits (when applicable) in alphabetical order, Note: Round each amount to the nearest whole dollar. Date Jul. 1.2020 Account Name b Dr. Cr. 0 . Dec 31, 2020 0 0 0 0 . 0 0 o Tocuinterest Dec 31, 2020 . 0 . 0 0 To record unrealized in or loss Check 0 On July 1, 2020, West Company purchased for cash, four $10,000 bonds of North Corporation at a market rate of 6%. The bonds pay 5% interest, payable on a semiannual basis each July 1 and January 1, and mature on July 1, 2023. The bonds are classified as trading securities. The annual reporting period ends December 31 Assume the effective interest method of amortization of any discounts or premiums. Ignore income taxes. Amortization Schedule Journal Entries in 2020 Journal Entries in 2021 d. Record the receipt of interest on January 1, 2021 e. Record the sale of all of the bonds on January 2, 2021, for $41,500. f. Record the adjustment to the Fair Value Adjustment account on December 31, 2021, assuming no additional TS investments. Note: List multiple debits or credits (when applicable) in alphabetical order. Note: Round each amount to the nearest whole dollar. Dr. Date Account Name d d Cr. Jan 1, 2021 0 0 Jan. 2,2021 0 . 0 0 0 0 1 Dec 31, 2021 0 0 0 0 Check ) emiannual basis each July 1 and January 1, and mature on July 1, 2023. The bonds are classified as trading securities. The annual reporting period ends December 31. ssume the effective interest method of amortization of any discounts or premiums. Ignore income taxes. Journal Entries in 2020 Journal Entries in 2021 Amortization Schedule Prepare a bond amortization schedule for the life of the bonds using the effective interest method. Hote: Round each amount entered into the schedule to the nearest whole dollar. Use the rounded amount for later calculation in the schedule. Adjust market interest the final year of the bond term for any net rounding difference. Stated Market Discount Bond Date Interest Interest Amortization Amortized Cost L 1, 2020 an 1, 2021 05 OS 1.1.2021 an. 1.2022 0 0 0 0 0 D 0 0 0 O 0 0 ul. 1. 2022 an 1, 2023 ul. 1. 2023 "otal 0 D OS 0 0 0 0 0 0 $ 0 Check On July 1, 2020, West Company purchased for cash, four 510,000 bonds of North Corporation at a market rate of 6%. The bonds pay 5% interest, payable on a semiannual basis each July 1 and January 1, and mature on July 1, 2023. The bonds are classified as trading securities. The annual reporting period ends December 31. Assume the effective interest method of amortization of any discounts or premiums. Ignore income taxes, Amortization Schedule Journal Entries in 2029 Journal Entries in 2021 b. Record the entry for the purchase of the bonds by West Company on July 1, 2020. c. Record the adjusting entries by West Company on December 31, 2020 to accrue interest revenue and record the unrealized gain or loss. The fair value of the bonds on December 31, 2020, was 541,500. Note: List multiple debits or credits (when applicable) in alphabetical order, Note: Round each amount to the nearest whole dollar. Date Jul. 1.2020 Account Name b Dr. Cr. 0 . Dec 31, 2020 0 0 0 0 . 0 0 o Tocuinterest Dec 31, 2020 . 0 . 0 0 To record unrealized in or loss Check 0 On July 1, 2020, West Company purchased for cash, four $10,000 bonds of North Corporation at a market rate of 6%. The bonds pay 5% interest, payable on a semiannual basis each July 1 and January 1, and mature on July 1, 2023. The bonds are classified as trading securities. The annual reporting period ends December 31 Assume the effective interest method of amortization of any discounts or premiums. Ignore income taxes. Amortization Schedule Journal Entries in 2020 Journal Entries in 2021 d. Record the receipt of interest on January 1, 2021 e. Record the sale of all of the bonds on January 2, 2021, for $41,500. f. Record the adjustment to the Fair Value Adjustment account on December 31, 2021, assuming no additional TS investments. Note: List multiple debits or credits (when applicable) in alphabetical order. Note: Round each amount to the nearest whole dollar. Dr. Date Account Name d d Cr. Jan 1, 2021 0 0 Jan. 2,2021 0 . 0 0 0 0 1 Dec 31, 2021 0 0 0 0 Check ) emiannual basis each July 1 and January 1, and mature on July 1, 2023. The bonds are classified as trading securities. The annual reporting period ends December 31. ssume the effective interest method of amortization of any discounts or premiums. Ignore income taxes. Journal Entries in 2020 Journal Entries in 2021 Amortization Schedule Prepare a bond amortization schedule for the life of the bonds using the effective interest method. Hote: Round each amount entered into the schedule to the nearest whole dollar. Use the rounded amount for later calculation in the schedule. Adjust market interest the final year of the bond term for any net rounding difference. Stated Market Discount Bond Date Interest Interest Amortization Amortized Cost L 1, 2020 an 1, 2021 05 OS 1.1.2021 an. 1.2022 0 0 0 0 0 D 0 0 0 O 0 0 ul. 1. 2022 an 1, 2023 ul. 1. 2023 "otal 0 D OS 0 0 0 0 0 0 $ 0 Check

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