Blue Company purchased, on January 1, 2017, as a held-to-maturity investment, $77,000 of the 9%, 5-year bonds of Chester Corporation for $71,309, which provides an 11% return. Prepare Blue’s journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used. (Round answers to 0 decimal places, e.g. 1,225. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) NO. Account Titles and Explanation Debit Credit
Blue Company purchased, on January 1, 2017, as a held-to-maturity investment, $77,000 of the 9%, 5-year bonds of Chester Corporation for $71,309, which provides an 11% return. Prepare Blue’s journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used. (Round answers to 0 decimal places, e.g. 1,225. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) NO. Account Titles and Explanation Debit Credit
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1MC
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Blue Company purchased, on January 1, 2017, as a held-to-maturity investment, $77,000 of the 9%, 5-year bonds of Chester Corporation for $71,309, which provides an 11% return.
Prepare Blue’s
NO. | Account Titles and Explanation | Debit | Credit |
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