Following are the non-strategic investment transactions of Corona Inc.:2020Jan.JuneJulySept.Dec.1 Purchased for $92,110 an 9.0%, $87,000 bond that matures in 21 years fromHanna Corporation when the market interest rate was 8.4%. Interest is paidsemiannually beginning June 30, 2020.Received interest on the Hanna bond.301303131Paid $127,600 for a Trust Inc. bond with a par value of $132,000 and a sixteen-years term. The bond pays interest quarterly beginning September 30, 2020, atthe annual rate of 8.8%; the market interest rate on the date of purchase was9.2%.Received interest on the Trust bond.Received interest on the Hanna and Trust bonds.The fair values of the bonds on this date equalled the fair values.Required:1. For each of the bond investments, prepare an amortization schedule showing only 2020 and 2021. (Round your intermediate and final answers to thenearest whole dollar amount. Enter all the amounts as positive values.)2. Prepare the entries to record the transactions described above. (Enter all the amounts as positive values. Do not round intermediate calculationsand round your final answers to the nearest dollar.)

Bonds are a financing tool. This is a loan. Company issue bonds to get money and people invest money…

Sept. Dec. 30 31 31 9.2%. Received interest on the Trust bond. Received interest on the Hanna and Trust bonds. The fair values of the bonds on this date equalled the fair values. Required: . For each of the bond investments, prepare an amortization schedule showing only 2020 and 2021. (Round your intermediate and final answers to the earest whole dollar amount. Enter all the amounts as positive values.) 2. Prepare the entries to record the transactions described above. (Enter all the amounts as positive values. Do not round intermediate calculations and round your final answers to the nearest dollar.)

Sept. Dec. 30 31 31 9.2%. Received interest on the Trust bond. Received interest on the Hanna and Trust bonds. The fair values of the bonds on this date equalled the fair values. Required: . For each of the bond investments, prepare an amortization schedule showing only 2020 and 2021. (Round your intermediate and final answers to the earest whole dollar amount. Enter all the amounts as positive values.) 2. Prepare the entries to record the transactions described above. (Enter all the amounts as positive values. Do not round intermediate calculations and round your final answers to the nearest dollar.)

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 1E

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