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On January 1, 2020, Metlock Company purchased 13% bonds, having a maturity value of $279,000...

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Accounting

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On January 1, 2020, Metlock Company purchased 13% bonds, having a maturity value of $279,000 for $299,622.84. The bonds provide the bondholders with a 11% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year, Metlock Company uses the effective interest method to allocate unamortized discount or premium. The bonds are classified as available for sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2020 2023 $297,600 $288.500 $289,600 $279.000 2021 2024 2022 $287,600 (a) (6) Prepare the journal entry at the date of the bond purchase. Prepare the journal entries to record the interest revenue and recognition of fair value for 2020. Prepare the journal entry to record the recognition of fair value for 2021 (c) Question 2 of 5 . 1.2020 2762284 Cast 5270 ec. 31. 2020 interest Receivable 37950 Interest Revenue 3911 Debat (To record interest received) Fair Value Adjustment U Holding in Los TIT (To record fair value adjustment) 6523.68 31.2021 Unele Holding Consulty 6524

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