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On January 1, 2011, Roosevelt Company purchased 12...

Description

Solution


Question

On January 1, 2011, Roosevelt Company purchased 12% bonds, having a maturity value of $518,000, for $557,272.07. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2011, and mature January 1, 2016, with interest receivable December 31 of each year. Roosevelt Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. (Round your answers to 2 decimal places, e.g. 25,100.25.) Questions: a) Prepare the journal entry at the date of the bond purchase. b) ** I attached as a photo** c) Prepare the journal entry to record the interest received and the amortization for 2011. d) Prepare the journal entry to record the interest received and the amortization for 2012

 

Paper#11182 | Written in 18-Jul-2015

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