In: Accounting
Hi i need analysis on textbook sollution On January 1, 2017, AJ Corporation purchased bonds with a face value of $300,000 for $308,373.53. The bonds are due June 30, 2020, carry a 13% stated interest rate, and were purchased to yield 12%. Interest is payable semiannually on June 30 and December 31. On March 31, 2018, in contemplation of a major acquisition, the company sold one-half the bonds for $159,500 including accrued interest; the remainder were held until maturity. (Analyze the specific outcomes and write an analysis directed toward the team at AJ Corporation describing what the numbers mean and how they relate to the business.)