Question
In: Accounting
On January 1, 2017, Skysong Company purchased 11% bonds, having a maturity value of $274,000, for...
On January 1, 2017, Skysong Company purchased 11% bonds, having
a maturity value of $274,000, for $295,314.87. The bonds provide
the bondholders with a 9% yield. They are dated January 1, 2017,
and mature January 1, 2022, with interest received on January 1 of
each year. Skysong Company uses the effective-interest method to
allocate unamortized discount or premium. The bonds are classified
as available-for-sale category. The fair value of the bonds at
December 31 of each year-end is as follows.
| 2017 | $293,000 | 2020 | $284,700 | |||
|---|---|---|---|---|---|---|
| 2018 | $283,700 | 2021 | $274,000 | |||
| 2019 | $282,800 |
| Q | Prepare the journal entry to record the recognition of fair value for 2018. |
|---|
| Dec 31, 2018 | Unrealized Holding Gain or Loss-Equity | ? | |
| Fair Value Adjustment | ? |
Solutions
ekkarill92 answered 6 months agoRelated Solutions
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