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On January 1, a company purchased 3%, 15-year corporate bonds for $42,359,796 as an investment. The bonds have a face amount of $60 million and
On January 1, a company purchased 3%, 15-year corporate bonds for $42,359,796 as an investment. The bonds have a face amount of $60 million and are priced to yield 6%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31. Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Amort Table General Journal Prepare a partial amortization table at the effective interest rate on June 30 and December 31. (Round your intermediate calculations to the nearest dollar amount. Enter your answers in whole dollars. Round final answers to the nearest whole dollar.) Period-End Cash Interest Received Bond Interest Revenue Discount Amortization Carrying Value January 1 June 30 December $ $ 900,000 900,000 $ 1,270,794 913,812 370,794 13,812 $42,359,796 41,989,001 % 42,002,813 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Amort Table General Journal Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31. (Enter your answers in whole dollars. Round your intermediate calculations to the nearest dollar amount. Round final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less No Date Credit Jun 30 General Journal Cash Discount on investment in bonds Interest revenue Debit 900,000 370,794 1,270,794 Dec 31 Cash Discount on investment in bonds Interest revenue 900,000 27,000 2,640,084 X
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