On January 1, a company purchased 3%, 10-year corporate bonds for $73,459,316 as an investment. The bonds have a face amount of $80 million and are priced to yield 4%. 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.
On January 1, a company purchased 3%, 10-year corporate bonds for $73,459,316 as an investment. The bonds have a face amount of $80 million and are priced to yield 4%. 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.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 7P: Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued...
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![Brief Exercise 14-8 (Algo) Investment in bonds [LO14-2]
On January 1, a company purchased 3%, 10-year corporate bonds for $73,459,316 as an investment. The bonds have a face amount of
$80 million and are priced to yield 4%. 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.
Complete this question by entering your answers in the tabs below.
Amortization
General
Journal
Prepare a partial amortization table at the effective interest rate on June 30 and December 31.
Note: Round intermediate calculations and your final answers to the nearest whole dollar.
Period-End
Cash Interest Bond Interest
Received
Revenue
Discount
Amortization
Carrying Value
January 1
$ 73,459,316
June 30
December 31
< Amortization
General Journal >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97d9671a-da8b-4099-86f6-0830ce79a0aa%2F1f6dd402-93dd-433c-ac56-e910c1de40e9%2Fiquuqb5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Brief Exercise 14-8 (Algo) Investment in bonds [LO14-2]
On January 1, a company purchased 3%, 10-year corporate bonds for $73,459,316 as an investment. The bonds have a face amount of
$80 million and are priced to yield 4%. 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.
Complete this question by entering your answers in the tabs below.
Amortization
General
Journal
Prepare a partial amortization table at the effective interest rate on June 30 and December 31.
Note: Round intermediate calculations and your final answers to the nearest whole dollar.
Period-End
Cash Interest Bond Interest
Received
Revenue
Discount
Amortization
Carrying Value
January 1
$ 73,459,316
June 30
December 31
< Amortization
General Journal >
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