Homework Answers
|
Period-End |
Cash Interest Received |
Bond Interest Revenue |
Discount Amortization |
Carrying Value |
|
January 1 |
$51845994 |
|||
|
June 30 |
$1800000 |
($51845994 * 4%) =$2073840 |
$273840 |
$52119834 |
|
December 31 |
$1800000 |
($52119834 * 4%) =$2084793 |
$284793 |
$52404627 |
Cash Interest received = $60 million * 3% = $1800000
(1)
|
Date |
General Journal |
Debit |
Credit |
|
June 30 |
Cash |
$1800000 |
|
|
Discount on bond investment |
$273840 |
||
|
Interest revenue |
$2073840 |
(2)
|
Date |
General Journal |
Debit |
Credit |
|
June 30 |
Cash |
$1800000 |
|
|
Discount on bond investment |
$284793 |
||
|
Interest revenue |
$2084793 |
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