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Please solve this On 1 June 20x8, Ghana Company purchased $9,000,000 of Monaco Corp. 3.80% bonds, classified as a FVOCI-Bond Investment. The bonds pay semi-annual
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On 1 June 20x8, Ghana Company purchased $9,000,000 of Monaco Corp. 3.80% bonds, classified as a FVOCI-Bond Investment. The bonds pay semi-annual Interest each 30 May and 30 November. The market Interest rate was 4% on the date of purchase. The bonds mature on 30 May 20X13. (PV of $1. PVA of $1, and PVAD of $1. (Use approprlate factor(s) from the tables provided.) Required: 1. Calculate the price paid by Ghana 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.) Price paid 2. Construct a table that shows Interest revenue reported by Ghana, and the carrying value of the investment, for each interest period for four Interest periods. Use the effective interest method. (Round your answers to the nearest whole dollar amount.) Period Cash Payment Interest Revenue Amortization Bond Carrying Value June 1 20X8 Nov 30, 20X8 June 1, 20% Nov 30, 20X9 Jun 1, 20xo 3. Prepare the entries for 20X8 and for 20X9, Including the year-end accrual, based on your calculations In requirement 2. (If no entry Is required for a transaction/event, select "No journal entry required" In the first account fleld. Round your answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet Record the investment in bonds. Note: Enter debits before credits. General Journal Debit Credit Date 31 Dec 20x8 Record entry Clear entry View generalioumalStep by Step Solution
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