Question
On may 1,2020, an entity acquired 1600000, 9% bonds at 97 plus accrued interest. Interest on bonds is payable semiannualy on March 1, and September,
On may 1,2020, an entity acquired 1600000, 9% bonds at 97 plus accrued interest. Interest on bonds is payable semiannualy on March 1, and September, and bonds mature on september 1,2023. The entity intended to hold these bonds until they mature. Due to an isolated event, the entity sold bonds 480000 for 103 plus accrued interest on may 1,2021. On july, bonds of 640000 were exchanged for 90000 ordinary share for 8 per share. Interest were received on the date of exchange. On September 1,2023, renaining bonds were redeemed and accrud interesr was received. Using straight line amortization, what is total interest income for 2020? Carrying amount of investmebt in bonds as of dec 31,2020? Gain on sale on 2021, May 1? Gain of exchange of bonds in 2022, jul 1? Total cash received by september 2,2023?
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