On january 1 2012 morgan company acquires 350500 of

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On January 1, 2012, Morgan Company acquires $350,500 of Nicklaus, Inc., 9% bonds at a price of $333,370. The interest is payable each December 31, and the bonds mature December 31, 2014. The investment will provide Morgan Company a 11.00% yield. The bonds are classified as held-to-maturity.

(d) Prepare the journal entry for the interest receipt of December 31, 2013, and the discount amortization under the effective-interest method.

Cash DR $31545
Debt Investment DR $?
Interest Revenue CR $?

Reference no: EM13601276

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