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Tsunami Sushi purchases $140,000 of 5-year, 8% bonds from Deep Sea Explorers on January 1. Management intends to hold the debt securities to maturity. For
Tsunami Sushi purchases $140,000 of 5-year, 8% bonds from Deep Sea Explorers on January 1. Management intends to hold the debt securities to maturity. For bonds of similar risk and maturity, the market rate is 9%. Tsunami paid $134,461 for the bonds. It receives interest semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31 is $133,000. Required: 1., 2.& 3. Record the necessary entries regarding the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of bonds. Note: Enter debts before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet 2 3 Record the purchase of bonds. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal 4. At what amount will Tsunami Sushi report its investment in the December 31 balance sheet? Investment View transaction list Journal entry worksheet
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