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On July 1, 2021, Costco Corp. purchased WEGTYR_TP bonds. Below is information about the terms of the bond: 1. Face value = $1,000,000 2. Stated
On July 1, 2021, Costco Corp. purchased WEGTYR_TP bonds. Below is information about the terms of the bond: 1. Face value = $1,000,000 2. Stated rate = 11% 3. Interest is paid semiannually on Dec. 30 and June 30 4. The bond will mature in ten years 5. Market rate = 14% Asssume Costco Corp. does not plan to sell the bonds immediately, but also does not plan to hold the bonds until they mature. Required: 1. Determine what Costco Corp. paid for the bonds. 2. Record the journal entry Costco Corp. recorded when they purchased the bond. 3. Record the journal entry to record the December 31, 2021 interest receipt. 4. Assume the fair value of the WEGTYR_TP bond is $950,000 on December 31, 2021. Indicate whether there is any journal entry given this information. If there is a journal entry, record the journal entry 5. Assume Costo Corp. sold the WEGTYR_TP bond on January 5, 2022 for 1,050,000. Given this information, record Costco Corp.'s journal entry to record the sale of the bond
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