Question
Part A: Journal Entries Date Account Dr Cr 2022-11-01 Cash $800,000 Bonds payable $800,000 To record the issuance Date Account Dr Cr 2022-12-31 fair value
Part A: Journal Entries
Date | Account | Dr | Cr |
| |
2022-11-01 | Cash | $800,000 |
| ||
Bonds payable | $800,000 |
| |||
To record the issuance |
Date | Account | Dr | Cr |
| |
2022-12-31 | fair value adjustment | $50,000 |
| ||
Unrealized holding Gain | $50,000 |
| |||
fair value adjustment to $850,000 |
Date | Account | Dr | Cr |
| |
2023-05-01 | Bond interest payable | $44,000 |
| ||
Cash | $44,000 |
| |||
(($800,000 x .11)/2) Semiannual bond payment |
Date | Account | Dr | Cr |
| |
2023-11-01 | Interest expense | $44,000 |
| ||
Bond interest payable | $44,000 |
| |||
To record the bond interest expense and interest payable for the period |
Date | Account | Dr | Cr |
2023-12-31 | Unrealized holding Loss | $10,000 | |
Fair value adjustment | $10,000 | ||
fair value adjustment to $840,000 |
What is effect of these journal entries on 2023 statement of cash flows.
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