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who can slove this questions?thanks Question4 (32 points) ABC Company purchased 100 Meissner AG 5%, 10-year, 1,000 bonds on January 1, 2022, for 100,000. The
who can slove this questions?thanks
Question4 (32 points) ABC Company purchased 100 Meissner AG 5%, 10-year, 1,000 bonds on January 1, 2022, for 100,000. The bonds pay interest annually on January 1. ABC's business model is to hold these bonds to collect contractual cash flows and sell. The market value of the bonds was 110,000 at the end of 2022. On January 1, 2023, after receipt of interest, ABC Company sold 40 of the bonds for 44,000. INSTRUCTIONS a. Prepare the journal entries to record the purchase of the bonds on January 1, 2022. b. Prepare the adjusting entry for the accrual of interest and the changes in bond value on December 31, 2022. (You can skip the closing entry.) C. Show the statement of financial position presentation from asset through equity section regarding the bond investments on December 31, 2022. d. Prepare the journal entry to record the receipt of interest, sale of the bonds, and reclassification adjustment on January 1, 2023. (You can skip the closing entry.) Step by Step Solution
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