Swifty Company purchased, on January 1, 2020, as an available-for-sale security, $90,000 of the 7%, 5-year bonds of Chester Corporation for $82,999, which provides an 9% return. Prepare Swifty's journal entries for (a) the purchase of the investment, (b) the receipt of annual interest and discount amortization, and (c) the year-end fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) The bonds have a year-end fair value of $85,500. Assume effective-interest amortization is used. (Round answers to O decimal places, eg. 1,225. Credit account titles are automatically indented when amount is entered. Do not indent manually.If o entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit (a) (c)

Swifty Company purchased, on January 1, 2020, as an available-for-sale security, $90,000 of the 7%, 5-year bonds of Chester Corporation for $82,999, which provides an 9% return. Prepare Swifty's journal entries for (a) the purchase of the investment, (b) the receipt of annual interest and discount amortization, and (c) the year-end fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) The bonds have a year-end fair value of $85,500. Assume effective-interest amortization is used. (Round answers to O decimal places, eg. 1,225. Credit account titles are automatically indented when amount is entered. Do not indent manually.If o entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit (a) (c)

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 3MC: On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9%...

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