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Your answer is partially correct. Try again. On January 1, 2017, Bramble Company purchased 12% bonds, having a maturity value of $320,000, for $344,260.74. The
Your answer is partially correct. Try again. On January 1, 2017, Bramble Company purchased 12% bonds, having a maturity value of $320,000, for $344,260.74. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Bramble 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. 2017 2018 $342,000 $329,700 $328,700 2020 2021 $330,700 $320,000 2019 (a) (b) (c) 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 2017. Prepare the journal entry to record the recognition of fair value for 2018. (Round answers to 2 decimal places, e.g. 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 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit (a) T Jan. 1, 2017 | Debt Investments 344261 * cash Cash 344261 (b) Dec. 31, 2017 Cash Inten ceivable 38400 No. Date Account Titles and Explanation Debit Credit Jan. 1, 2017 - Debt Investments 344261 ^ cash 344261 JU 71 (b) T Dec. 31, 2017 A Interest Receivable 38400 384001 Debt Investments 3974 1 Interest Revenue 34426 (To record interest received) Fair Value Adjustment 1713 1713 Unrealized Holding Gain or Loss - Equity (To record fair value adjustment) (c) 7 Dec. 31, 2018 Tunrealized Holding Gain or Loss - Equity T 9700 Fair Value Adjustment 9700 m e ..... .. . .. ........ . arch... Wel
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