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Please help with the ones that are wrong (red X) as well double check everything and question number 4 please if it correct, Will rate
Please help with the ones that are wrong (red X) as well double check everything and question number 4 please if it correct, Will rate up!
On 1 January 20X4, Queen Company purchased $5,400,000 of Sport Corp. 6% bonds, classified as an FVOCI-Bonds investment. The bonds pay semi-annual interest each 30 June and 31 December. The market interest rate was 4% on the date of purchase. The bonds mature on 31 December 20X8. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the price paid by Queen Company. (Round time value factor to 5 decimal places. Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) Answer is complete and correct. Price paid $ 5,885,070 2. Construct a table that shows interest revenue reported by Queen, and the carrying value of the investment, for the first two interest periods. Use the effective-interest method. (Round your answers to the nearest whole dollar amount.) Answer is complete and correct. Period Cash Payment 2% Interest Revenue Premium Amortization 0 Bond Carrying Value $5,885,070 5,840,771 5,795,586 1 44,299 $ 162,000 $ 117,701 $ 162,000 116,815 2 45,185 3. Queen has a June 30 year-end. On June 30, 20X4, the fair value of the investment was $5,680,000. Prepare the journal entries required on June 30 related to this investment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) Answer is not complete. No Date General Journal Debit Credit 1 30 June 20X4 Cash 162,000 Interest revenue 117,701 Investment in FVOCI-B: Sport Company bonds 44,299 2 30 June 20X4 No journal entry required 4. Prepare the journal entry for the second payment of interest received on December 31, 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 1 Cash 162,000 Investment in FVOCI-B: Sport Company bonds 116,815 45,185Step by Step Solution
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