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What are Crow journal entries for the purchase

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Question - Carow Corporation purchased on June 30, 2020, as an available-for-sale security, $60,000 of the 8% (annual coupon rate), 5-year bonds of Harrison, Inc. for $65,118, which provides a 6% annual return. The bonds pay interest semiannually. What are Crow's journal entries for (a) the purchase of the investment on June 30, 2020, (b) the receipt of semiannual interest and amortization on Dec 31, 2020. Assume effective-interest amortization is used, and (c) the year-end fair value adjustment on Dec 31, 2020. (Assume a zero balance in the Fair Value Adjustment account.) The bonds have a year-end fair value of $64,000.

Reference no: EM133152772

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