On January 1, 2022, ABC purchased $100,000 principal 12% bonds for $90,000.The bonds pay interest...
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Accounting
On January 1, 2022, ABC purchased $100,000 principal 12% bonds for $90,000.The bonds pay interest annually on January 1 beginning 1/1/23 and mature in 20 years. As of December 31, 2012, the bonds were trading at $110,000.The company amortizes any premium or discount on its bond investments using the straight-line method.
Required:
Assuming the bonds were classified as Available for Sale, submit the journal entry to note the purchase of the investment on 1/1/22.
Assuming the bonds were classified as Available for Sale, show the adjustment entry to accrue interest on 12/31/22
How much is the bond investment account going to be reported on the Balance Sheet if they were classified as Available to Sell?
How much will the bond investment account be reported on the Balance Sheet if they are classified as Hold to Maturity?
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