Make the journal entry for the purchase of the investment

Reference no: EM132805692

Mohammed Ltd. purchased $181,200 of 6-year, 8% bonds from Caleb Corp for $172,939 on January 1, 2020. The market rate of interest is 9%. Mohammed Ltd. classified the investment using the amortized cost method. The bonds pay interest semi-annually.

Required:

Problem a) make the journal entry for the purchase of the investment and receipt of interest for the first two interest payments received. Assume that Mohammed Ltd. uses IFRS.

Problem b) make the same three journal entries required above assuming that Mohammed Ltd. uses ASPE and has chosen to use the straight-line method to amortize the discount.

Reference no: EM132805692

Questions Cloud

Better frameworks to use for addressing risks : Has any other research you uncover suggest there are better frameworks to use for addressing risks?

What role does an educator have in ensuring students : What role does an educator have in ensuring students receive global education? How does an educator ensure this and how is it presented to students?

Write about Personal Philosophy of Nursing : Question - Write about Personal Philosophy of Nursing. Definition of a human being. Definition of environment

Which of these skills and knowledge is most significant : Incorporating global education means teaching skills and knowledge that is applicable to various situations and settings. Which of these skills and knowledge.

Make the journal entry for the purchase of the investment : Mohammed Ltd, Make the journal entry for the purchase of the investment and receipt of interest for the first two interest payments received.

Better job minimizing risk of failure : Discuss what went wrong, what went right, and how the company could have done a better job minimizing the risk of failure

Identify two situations reflecting th conflict : Do you think that teaching is really "America's Most Embattled Profession"? The Teacher Wars describes many conflicts between teachers, administrators.

Which valuation technique are examples of binomial model : Which would meet the qualifications as market participants? A subsidiary of the reporting unit interested in purchasing assets similar to those being valued.

Discuss the causes of cardiovascular disease : Research and discuss the causes of cardiovascular disease and its relationship to diet and exercise. Compare and analyze your own personal wellness data.

User Account

All Pages