Question
Purchase of investment in debt securities until maturity On July 1, 2021, Juan Inversionista purchased as an investment with the intention of holding them until
Purchase of investment in debt securities until maturity
On July 1, 2021, Juan Inversionista purchased as an investment with the intention of holding them until maturity (held-to-maturity) bonds issued by Amazon at a cost equivalent to their maturity value of $50,000. The bonds pay interest at 6% year tothe semi-annual payable every December 31 and June 30. As of December 31, 2021, Amazon bonds have a fair value of $46,000.
- Make the July 1, 2021 journal entry to record the purchase of the debt investment.
- Make the journal entry to record the interest payment on December 31, 2021.
- Make the journal entry to record the change in value of debt investments as of December 31, 2021.
- Make the daily payment for the collection of the investment in debt at maturity.
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Cost Accounting Foundations and Evolutions
Authors: Michael R. Kinney, Cecily A. Raiborn
8th Edition
9781439044612, 1439044619, 978-1111626822
