Question
In: Accounting
On January 1, 2018, Ellison Company purchased 12% bonds, having a maturity value of €800,000, for...
On January 1, 2018, Ellison Company purchased 12% bonds,
having a maturity value of €800,000, for €860,652. The bonds
provide the bondholders with a 10% yield. They are dated January 1,
2018, and mature January 1, 2023, with interest receivable December
31 of each year. Ellison’s business model is to hold these bonds to
collect contractual cash flows.
Instructions
(a) Prepare a bond amortization schedule through 2019.
(b) Prepare any entries necessary at December 31, 2019, using
the fair value option, assuming the fair value of the bonds is
€840,000.
my answer to part b is:
Dr. Cash 96,000
Cr. Debt invetment 10928
Interest Revenue 85072
is my answer correct?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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