On September 1. Concord Ltd. purchased $79,800 of five-year, 9% bonds for $76,719, resulting in an effective (yield) rate of 10%. The bonds pay interest each March 1 and September 1. Concord Ltd. applies ASPE, accounts for the investment under the amortized cost approach using the effective interest accounting policy, and has a December 31 year end. The following March 1, after receiving the semi-annual interest on the bonds, Concord sells the bonds for $79,329. Part 1 Prepare Concord's journal entry for the purchase of the investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit September 1 Save for Later Attempts: 0 of 1 used Submit Answer Prepare Concord's journal entry for any adjusting entry needed at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to decimal places, eg. 5,275.) Date Account Titles and Explanation Debit Credit December 31 Save for Later Attempts: 0 of 1 used Submit Answer Question Part Score --/2.5 Part 3 Prepare Concord's journal entry for the receipt of interest on March 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit March 1 Part 4 Prepare Concord's journal entry for the sale of the bond investment on March 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to 0 decimal places, eg. 5,275.) Debit Credit Date Account Titles and Explanation March 1
