Problem #
Investment in Bonds HTM Securities HW
On Jan. Philo Kvetch purchased bonds @ $ per bond.
The new bond issue was priced such that the bonds have an yield annual of
The bond annual coupon rate is over the year term of the bonds.
The bonds pay interest semiannually.
Jan
Prepare the entry for the purchase of the bonds
Dr
Jun
Prepare the entry for the first semiannual receipt
of interest and amortization using the effective
interest method.
Dr
Cr
Dec
Prepare the entry for the second semiannual receipt
of interest and amortization using the effective interest method.
Dr
Cr
Jun
Prepare the entry for the first semiannual receipt
of interest and amortization using the straight line method.
Dr
Cr
Dec
Prepare the entry for the second semiannual receipt of interest and amortization using the straight line
method.
Dr
Cr
