Question
Starship Enterprises enters into the following transactions during 2017 and 2018: 2017 Jan. 1 : Purchased $100,000 face value of Northern Lights Inc. bonds at
Starship Enterprises enters into the following transactions during 2017 and 2018:
2017
Jan. 1: Purchased $100,000 face value of Northern Lights Inc. bonds at face value.
The newly issued bonds have an interest rate of 8% paid semiannually on June 30 and December 31. The bonds mature in five years.
June 30: Received interest on the Northern Lights Inc. bonds.
Dec. 31: Received interest on the Northern Lights Inc. bonds.
2018
Jan. 1: Sold the Northern Lights Inc. bonds for $102,000.
Required - Why was Starship able to sell its Northern Lights bonds for $102,000?
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