1
answer
0
watching
116
views
silverpug406Lv1
28 Sep 2019
On January 1, 2014, Hmart Company purchased 5% bonds, having amaturity value of $500,000, for $428,938. The bonds provide thebondholders with a 7% yield. They are dated January 1, 2014, andmature January 1, 2024, with interest receivable June 30 andDecember 31 of each year. H-mart Company uses theeffective-interest method to allocate unamortized discount orpremium. The bonds are classified in the held-to-maturitycategory.
(a) Prepare the journal entry at the date of the bondpurchase.
(b) Prepare the first 3 years of a bond amortizationschedule.
(c) Prepare the journal entries to record the interest receivedand the amortization for 2014.
On January 1, 2014, Hmart Company purchased 5% bonds, having amaturity value of $500,000, for $428,938. The bonds provide thebondholders with a 7% yield. They are dated January 1, 2014, andmature January 1, 2024, with interest receivable June 30 andDecember 31 of each year. H-mart Company uses theeffective-interest method to allocate unamortized discount orpremium. The bonds are classified in the held-to-maturitycategory.
(a) Prepare the journal entry at the date of the bondpurchase.
(b) Prepare the first 3 years of a bond amortizationschedule.
(c) Prepare the journal entries to record the interest receivedand the amortization for 2014.
Jamar FerryLv2
28 Sep 2019
