PLEASE INCLUDE ALL CALCULATIONS AND SHOW STEPS On January 1, 2022, Roarke Ltd....
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PLEASE INCLUDE ALL CALCULATIONS AND SHOW STEPS
On January 1, 2022, Roarke Ltd. paid $457,876.36 for 4% bonds with a maturity value of $500,000. The purchase price was based on a market interest rate of 6%. The bonds were issued by Biggs. Inc. on January 1, 2022, and mature on January 1, 2027, with interest receivable on December 31 of each year. Roarke Ltd. classifies the bonds as a nonstrategic debt investment held to earn interest income. Instructions Prepare the following for Roarke Ltd. (record all journal entry amounts to the nearest cent): A. Prepare the journal entry to record the bond purchase. (2 marks) B. Prepare the journal entry to record the receipt of interest on December 31, 2023. (3 marks) C. Prepare the journal entry to record the disposal of the bond at maturity. (2 marks)
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