The following Sweetwater Corporation transactions are for bonds that were purchased as a trading investment for the year ended December 31, 2021: Feb. 1 Purchased $244,000 of Leslye Corporation 3% bonds at 106 ( this means 106% of maturity value). Interest is received semi-annually on August 1 and February 1. The bonds mature on February 1, 2023. Received interest on Leslye bonds. Sold $97,600 of the Leslye bonds at 101. Accrued interest on the remaining bonds. The fair value of the remaining bonds was 100 on this date. Aug. 1 2 Dec. 31 31

The following Sweetwater Corporation transactions are for bonds that were purchased as a trading investment for the year ended December 31, 2021: Feb. 1 Purchased $244,000 of Leslye Corporation 3% bonds at 106 ( this means 106% of maturity value). Interest is received semi-annually on August 1 and February 1. The bonds mature on February 1, 2023. Received interest on Leslye bonds. Sold $97,600 of the Leslye bonds at 101. Accrued interest on the remaining bonds. The fair value of the remaining bonds was 100 on this date. Aug. 1 2 Dec. 31 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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1MC

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