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On January 1, 2022, Investor Limited Purchased a bond with the following characteristics: - Face...

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Accounting

On January 1, 2022, Investor Limited Purchased a bond with the following characteristics:

- Face Value of $60,000 with a coupon rate of 6% per annum

- Interest Paid semi-annually on June 30 and December 31

- Maturity date: December 31, 2026

The bonds were priced to yield 8%, Investor Limited paid $55,133

At December 31, 2022, the bonds had a fair value of $59,000

Required

  1. Assume that investor limited decides to account for this bond investment using FVOCI. Prepare the 2022 journal entries related to this bond investment.
  2. Assume that Investor Limited sells $45,000 face value of the bonds on January 1, 2023. Proceeds from selling these bonds were $44,000. Prepare the journal entry for the sale of the bonds.

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