Solution-Prepare the journal entry at the date of the bond

Prepare the journal entry at the date of the bond purchase

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Reference no: EM133131672

Question - On January 1, 2022, Roosevelt Company purchased 12% bonds having a maturity value of $500,000 for $537,907.40. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2022, and mature January 1, 2027, with interest received December 31 of each year. Roosevelt's business model is to hold these bonds to collect contractual cash flows.

Required -

a. Prepare the journal entry at the date of the bond purchase.

b. Prepare a bond amortization schedule.

c. Prepare the journal entry to record the interest received and the amortization for 2022.

d. Prepare the journal entry to record the interest received and the amortization for 2023.

Reference no: EM133131672

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Prepare the journal entry at the date of the bond purchase

Reference no: EM133131672

Reference no: EM133131672

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