Accy 112 Ex 12-1,5

Purchasing long term bonds is classified as

Journal entry for Purchase
6% stated rate
8% market rate
Purchase cost $200
240 bonds

Journal entry for Interest Year End
6% stated rate
8% market rate
Purchase cost $200
240 bonds

What is the cash value debited to for the year end interest for HTM bonds?

What is the interest revenue on the bond for the year end interest calculations

What will the balance sheet look like
6% stated rate
8% market rate
Purchase cost $200
240 bonds
 
Interest revenue 8, disc on bond .8, cash 7.2

Calculation for balance sheet entry for HTM bonds

Sell of bond for $190
6% stated rate
8% market rate
Purchase cost $200
240 bonds

Statement of cash flow entry
6% stated rate
8% market rate
Purchase cost $200
240 bonds

Journalize
2013                
Dec 17    Purchased 100,000 Grocer’s Supply Corporation preferred shares for $350,000.                       
       28    Received cash dividends of $2000 from Grocer’s Supply Corporation preferred shares. 
       31    Recorded any necessary adjusting entry relating to the Grocers’ Supply Corporation preferred shares. The market price of the stock was $4 per share.               
2014               
        Jan 5       Sold the Grocer’s Supply Corporation preferred shares for $395,000.