Sanchill Compary purchased on January 1.2025 , as an available-for-sale security, 57,000 of the 11%,5-year...
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Sanchill Compary purchased on January 1.2025 , as an available-for-sale security, 57,000 of the 11%,5-year bonds of 0 ak Corporation for $68,794, which provides an 13% return. Prepare Sandhilis journal entries for (a) the purchase of the imestment, (b) the recelpt of annual interest and discount amortization, and (c) the vear-end fair value adjustment. (Assume a zero balarce in the Fair Value Adjustment account.) The bonds have a vear-end fairvalue of $70,300. Assume effective-interest amortization is used. (List alt debit entries before credit entries, Credit account titles are outomatically indented when amount is eatered. Do not indent manually. If no entry is required, select "No Entry" for the acceunt titles and enter 0 for the emounts, Round answers to 0 decimal places, es. 1.225J
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