Problem 9-9 The following information relates to the debt securities investments of Martinez Company: 1. On February 1, the company purchases 10% bonds of Gibbons Co. having a par value of $282,000 at 100 plus accrued interest. Interest is payable April 1 and October 1. 2. On April 1, semi-annual interest is received. 3. On July 1, 9% bonds of Sampson Inc. are purchased. These bonds with a par value of $188,000 are purchased at 100 plus accrued interest. Interest dates are June 1 and December 1. On October 1, semi-annual interest is received. 5. 4. On December 1, semi-annual interest is received. On December 31, the fair values of the bonds purchased on February 1 and July 1 are 95 and 93, respectively. 6. eexcept for the Prepare any journal entries you consider necessary, including year-end enales and enter o for the a ats, Record journal entrie Do no use interest receivabie eroblem ear end accrual.) (Credit account titles are automatically indented when the amount is entered. Do not indent (December 31), assuming are FV-OCI manually. If no entry is required, select "No Entry" for the account in the order presented in Date Account Titles and Explanation Debit Credit Feb. 1 July 1 (To accrue interest) (To record fair value adjustment)
Problem 9-9 The following information relates to the debt securities investments of Martinez Company: 1. On February 1, the company purchases 10% bonds of Gibbons Co. having a par value of $282,000 at 100 plus accrued interest. Interest is payable April 1 and October 1. 2. On April 1, semi-annual interest is received. 3. On July 1, 9% bonds of Sampson Inc. are purchased. These bonds with a par value of $188,000 are purchased at 100 plus accrued interest. Interest dates are June 1 and December 1. On October 1, semi-annual interest is received. 5. 4. On December 1, semi-annual interest is received. On December 31, the fair values of the bonds purchased on February 1 and July 1 are 95 and 93, respectively. 6. eexcept for the Prepare any journal entries you consider necessary, including year-end enales and enter o for the a ats, Record journal entrie Do no use interest receivabie eroblem ear end accrual.) (Credit account titles are automatically indented when the amount is entered. Do not indent (December 31), assuming are FV-OCI manually. If no entry is required, select "No Entry" for the account in the order presented in Date Account Titles and Explanation Debit Credit Feb. 1 July 1 (To accrue interest) (To record fair value adjustment)
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter11: Liabilities: Bonds Payable
Section: Chapter Questions
Problem 11.2BPR
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