On January 2, 2021, Wildcat Company purchased $93,000 of 10% bonds at face value. The bonds are to be held to maturity. The bonds pay interest semiannually on January 1 and July 1. Required: 1. Prepare the appropriate journal entry to record the acquisition of the bonds. 2. Record the first two interest payments, July 1, 2021 and January 1, 2022 (including the accrual interest at December 31, 2021)
On January 2, 2021, Wildcat Company purchased $93,000 of 10% bonds at face value. The bonds are to be held to maturity. The bonds pay interest semiannually on January 1 and July 1. Required: 1. Prepare the appropriate journal entry to record the acquisition of the bonds. 2. Record the first two interest payments, July 1, 2021 and January 1, 2022 (including the accrual interest at December 31, 2021)
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 2E: Held-to-Maturity Securities and Amortization of a Discount On January 1, 2019, Kelly Corporation...
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