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Home / Questions / Question On January 1, a company purchased 3%, 20-year corporate bonds for $69,033,776 as ...

Question On January 1, a company purchased 3%, 20-year corporate bonds for $69,033,776 as an investm

On January 1, a company purchased 3%, 20-year corporate bonds for $69,033,776 as an investment. The bonds have a face amount of $80 million and are priced to yield 4%. Interest is paid semiannually.

Prepare a partial amortization table at the effective interest rate on June 30 and December 31. (Enter your answer in whole dollars. Round your intermediate calculations to the nearest dollar amount.)

Period End      Cash Interest received     bond interest revenue     discount amortization Carry value

January 1st 

June 30th

December 31st

Then

Prepare a partial amortization table at the effective interest rate on June 30 and December 31. (Enter your answer in whole dollars. Round your intermediate calculations to the nearest dollar amount.)

Period End      Cash Interest received     bond interest revenue     discount amortization Carry value

January 1st 

June 30th

December 31st

Then

Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31. (Enter your answers in whole dollars. Round your intermediate calculations to the nearest dollar amount. If no journal entry is required for a transaction, select "No journal entry required" in the first account field.)

 

Apr 22 2020 View more View Less

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