Presented below is an amortization schedule related to Flounder Company's 5-year, $160,000 bond with a 7% interest rate and a 5%yield, purchased on December 31, 2023, for $173,855.Date12/31/2312/31/24 $11,20012/31/2512/31/2612/31/2712/31/28CashInterestReceived RevenueAmortized costFair value11,20011,20011,20011,200$8,69312/31/24$171,348.8,5678,436170,8008,2988,151Bond PremiumAmortization$2,5072,633170,9002,7642,9023,049The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end.Carrying Amountof Bonds$173,855171,348167,800168,715165,951163,049160,00012/31/2512/31/26 12/31/27$168,715 $165,951 $163,049164,100LL12/31/28$160,000160,000 (a)(b)(c)(d)(e)(f)No.(List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Ifno entry is required, select "No Entry" for the account titles and enter O for the amounts.)(a)(b)Prepare the journal entry to record the purchase of these bonds on December 31, 2023, assuming the bonds are classified asheld-to-maturity securities.Prepare the journal entry related to the held-to-maturity bonds for 2024.Prepare the journal entry related to the held-to-maturity bonds for 2026.Prepare the journal entry to record the purchase of these bonds, assuming they are classified as available-for-sale.Prepare the journal entries related to the available-for-sale bonds for 2024.Prepare the journal entries related to the available-for-sale bonds for 2026.DateAccount Titles and Explanation60,000HO SearchDELLODebitbCredit

No. Date Account Titles And Explanation Debit Credit (a) Dec. 31, 2023…

Presented below is an amortization schedule related to Flounder Company's 5-year, $160,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2023, for $173,855. Date 12/31/23 12/31/24 12/31/25 12/31/26 12/31/27 12/31/28 Cash Received Revenue $11,200 Fair value Amortized cost 11,200 11,200 11,200 Interest Bond Premium Amortization 11,200 $8,693 12/31/24 $171,348 8,567 8,436 170,800 8,298 8,151 $2,507 2,633 2,764 170,900 2,902 3,049 Carrying Amount of Bonds The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end. $173,855 167,800 171,348 168,715 165,951 163,049 160,000 12/31/25 12/31/26 12/31/27 $168,715 $165,951 $163,049 164,100 12/31/28 $160,000 160,000

Presented below is an amortization schedule related to Flounder Company's 5-year, $160,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2023, for $173,855. Date 12/31/23 12/31/24 12/31/25 12/31/26 12/31/27 12/31/28 Cash Received Revenue $11,200 Fair value Amortized cost 11,200 11,200 11,200 Interest Bond Premium Amortization 11,200 $8,693 12/31/24 $171,348 8,567 8,436 170,800 8,298 8,151 $2,507 2,633 2,764 170,900 2,902 3,049 Carrying Amount of Bonds The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end. $173,855 167,800 171,348 168,715 165,951 163,049 160,000 12/31/25 12/31/26 12/31/27 $168,715 $165,951 $163,049 164,100 12/31/28 $160,000 160,000

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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