Wildhorse Company purchased, on January 1, 2020, as a held-to-maturity investment, $67,000 of the 9%, 5-year bonds of Chester Corporation for $62,047, which provides an 11% retur. Prepare Wildhorse's journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used. (Round answers to 0 decimal places, e.g. 1,225. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) No. Account Titles and Explanation (a) (b) Debit Credit

Wildhorse Company purchased, on January 1, 2020, as a held-to-maturity investment, $67,000 of the 9%, 5-year bonds of Chester Corporation for $62,047, which provides an 11% retur. Prepare Wildhorse's journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used. (Round answers to 0 decimal places, e.g. 1,225. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) No. Account Titles and Explanation (a) (b) Debit Credit

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 6RE: Refer to the information in RE13-5. Assume that on June 30, Aggie received interest on the Smith...

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Refer to the information in RE13-5. Assume that on December 31, 2019, the investment in Smith Corporation bonds has a market value of 12,500. Prepare the year-end journal entry to record the unrealized gain or loss.
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