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please show all steps! thank you Exercise 17 4 On January 1, 2017, Oriole Company purchased 12% bonds, having a maturity value ot $310,000, for
please show all steps! thank you
Exercise 17 4 On January 1, 2017, Oriole Company purchased 12% bonds, having a maturity value ot $310,000, for $333,502.59. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Oriole Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2017 2018 2019 331,200 2020 $319,100 2021 $318,000 $320,200 $310,000 (a) Prepare the journal entry at the date of the bond purchase (b) Prepare the jounal entries to record the interest revenue and recognition of fair value for 2017 (c) Prepare the jounal entry to record the recognition of fair value for 2018. (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles 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 0 for the amounts. No. Date Account Titles and Explanation Debit Credit (a) Jan. 1, 2017Debt nvestments 333502.59 Cash 333502.59 (b) Dec. 31, 2017Cash Deht Investments Interest Revenue 33350.25 (To record interest received)Step by Step Solution
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