Please fix all the incorrect parts of his question.
roblem 17-2 January 1, 2017, whispering Company purchased $410,000, 8% bonds of Aguirre Co. for $378,339. The bonds were purchased to yield 10% interest. nterest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2022. Whispering Company uses the effective-interest method to mortize discount or premium. On January 1, 2019, Whispering Company sold the bonds for $380,070 after receiving interest to meet its liquidity needs. Your answer is correct. Prepare the journal entry to record the purchase of bonds on January 1. Assume that the bonds are classified as available-for-sale. (Credit account tities are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, 2017 Debt Investments 378339 Cash 378339 SHOW LIST OF ACCOUNTS SHON ANSWER LINK TO TEXT Your answer is partially correct. Try again. Prepare the amortization schedule for the bonds. (Round answers to 0 decimal places, e.g. 1,250.) Prepare the amortization schedule for the bonds. (Round answers to O decimal places, e.g. 1,250.) Schedule of Interest Revenue and Bond Discount Amortization-Effective-Interest Method Bonds Purchased to Yield Interest Receivable Or Cash Received Interest Revenue Bond Discount Amortization Carrying Amount of Bonds Date 0 0 378339 18916 15133.56 3782.44 382121.44 18916 15284.86 3631.14 385752.58 18916 15430.10 3485.90 389238.48 18916 15569.54 3346.46 92584.94 18916 15703.40 3212.60 395797.54 1/1/20 18916 15831.90 3084.10 398881.64 7/1/20 18916 15955.27 2960.73 401842.38 1/1/21 18916 16073.70 2842.30 404684.68 0 0 378339 18916 15133.56 3782.44 382121.44 18916 15284.86 3631.14 385752.58 18916 15430.10 3485.90 389238.48 18916 15569.54 3346.46 392584.94 18916 15703.40 3212.60 395797.54 1/1/20 18916 15831.90 3084.10 398881.64 7/1/20 18916 15955.27 2960.73 401842.38 1/1/21 18916 16073.70 2842.30 404684.68 7/1/21 18916 16187.39 2728.61 407413.29 1/1/22 18916 16328.53 2587.47 410000.76 Total 186160 157498.25 31661.76 $U NI (c) Prepare the journal entries to record the semiannual interest on (1) July 1, 2017, and (2) December 31, 2017 (d) If the fair value of Aquirre bonds is $382,070 on December 31, 2018, prepare the necessary adjusting entry. (Assume the fair value adjustment balance on January 1, 2017, is a debit of $3,089.) Prepare the journal entry to record the sale of the bonds on January 1, 2019 (e) (Round answers to o decimal places, e.g. 2,500. Credit account titles are automatically indented when amount is en manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Date Account Titles and Explanation Debit Credit (c) (1) July 1, 2017 Cash 18916 Debt Investments 3782.44 Interest Revenue 15133.56 (2) Dec. 31, 2017 Interest Receivable 18916 Debt Investments 363.14 Interest Revenue 15287.86 (d) Dec. 31, 2018 Unrealized Holding Gain or Loss - Equity 13603.90 Fair Value Adjustment 13603.90 CALCULATOR PRINTER VERSION Date Account Titles and Explanation o. Debit Credit (1) July 1, 2017 Cash 18916 Debt Investments 3782.44 Interest Revenue 15133.56 (2) Dec. 31, 2017 Interest Receivable 18916 Debt Investments 363.14 Interest Revenue 15287.86 Dec. 31, 2018 Unrealized Holding Gain or Loss-Equity 13603.90 Fair Value Adjustment 13603.90 Jan. 1, 2019 Cash 38007 12541.90 392584.90
