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On January 1, 2020, Metlock Company purchased 12% bonds having a maturity value of S284,000 for $305,531 40. The bonds provide the bondholders with a
On January 1, 2020, Metlock Company purchased 12% bonds having a maturity value of S284,000 for $305,531 40. The bonds provide the bondholders with a 10% yleld. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year Metlock 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 2020 2021 $308,400 2023 $293 200 $292.200 2024 $284.000 5291.200 2022 a) Prepare the journal entry at the date of the band purchase Prepare the journal entries to record the Interest revenue and recognition of fair value for 2020. Prepare the Journal entry to record the recognition of fair value for 2021 (b) Prepare the journal entry at the date of the bond purchase Prepare the Journal entries to record the interest revenue and recognition of fair value for 2020 Prepare the journal entry to record the recognition of fair value for 2021 Hound answers to 2 decimal places, e 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 for the amounts) No. Date Account Titles and Explanation Debit Crer (b To record interest received To record fale value adjustment
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