Vestments On 5/2/17, Anna Company purchased $100,000 of the 9910- for $106,247,
ID: 2574264 • Letter: V
Question
Vestments On 5/2/17, Anna Company purchased $100,000 of the 9910- for $106,247, 1. which provides an 8% return on annual interest payments made every ets made every5lar.Ah rporation 5/1. Anna a year. The does not intend to hold the bonds until maturity, but will hold them for longer than market value of the bonds at 12/31/17 is $106,100 and at 12/31/18 is $106 Anna sells the bonds for $105.950 plus accrued interest. Wh 2017 and 2018 t year-end financial statements and on 3/1/19 to record the sale o ,000. On 3/1/ at journal entries will Anna make in the o appropriately record these transactions and to report this investment on the investment?Explanation / Answer
workings:
Date General journal Debit Credit 5.2.2017 Investment in Bonds of Dexter 106247 To cash 106247 [Bonds purchased] Dec.31 2017 Unrealised holding gain/(loss)- OCI 147 Investment in Bonds of Dexter 147 [Unrealised holding gain/(loss) recorded] 5.2.2017 Cash 8000 Interest income 8000 [Interest received] Dec.31 2018 Unrealised holding gain/(loss)- OCI 100 Investment in Bonds of Dexter 100 [Unrealised holding gain/(loss) recorded] 5.2.2018 Cash 8000 Interest income 8000 [Interest received] 3.1.19 Cash 112,617 Interest income 6,667 Realised gain/(loss)- Income statement -50 Investment in Bonds of Dexter 106,000 [Investment disposed, Proceeds accounted] 3.1.19 Realised gain/(loss)- Income statement -247 Unrealised holding gain/(loss)- OCI -247 [Transfer of unrealied holding gain on disposal]Related Questions
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