On January 1, 2020, Splish Company purchased 12% bonds, having a maturity value of $450,000.00, for $484,116.66. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received January 1 of each year. Splish has an active trading strategy for these bonds. The fair value of the bonds at December 31 of each year-end is as follows. 2020 $481,010.12 2023 $464,524.47 2021 $462,524.47 2024 $450,000.00 2022 $460,524.47 c. Prepare the journal entry to record the recognition of fair value for 2021.
On January 1, 2020, Splish Company purchased 12% bonds, having a maturity value of $450,000.00, for $484,116.66. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received January 1 of each year. Splish has an active trading strategy for these bonds. The fair value of the bonds at December 31 of each year-end is as follows. 2020 $481,010.12 2023 $464,524.47 2021 $462,524.47 2024 $450,000.00 2022 $460,524.47 c. Prepare the journal entry to record the recognition of fair value for 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, Splish Company purchased 12% bonds, having a maturity value of $450,000.00, for $484,116.66. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received January 1 of each year. Splish has an active trading strategy for these bonds. The fair
| 2020 | $481,010.12 | 2023 | $464,524.47 | |||
| 2021 | $462,524.47 | 2024 | $450,000.00 | |||
| 2022 | $460,524.47 |
c. Prepare the
(I did parts a and b already)
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