Question

31, 2021, the hands hefir value of 1.600.000 and bonds from held-to-maturity to trading securita sheet and the 2021 income stal o w the following umber 31 hased 54 million sha We had a fair value of otrading securitie s ll bedste andere Desember 11.3021, balance Investment in bonds (TS) $ 3.600.000 $3,600,000 $4,000,000 $4,000,000 A) Option a B) Option Option D) Options $ 400.000 400,000 On January 1, 2021, Rupar Retailers purchased $100,000 of Anand Company bonds at a count of $5.000. The Andheds i ntreut were purchased when the market interest rate was 736 for hands of similar risk and maturity. The bonds pay interest semiannually on June 30 and December 31 of each year. Runa accounts for the bonds as a held-to-maturity investment, and uses the effective interest method. In Rupar's December 31, 2021, journal entry to record the second period of interest, Rupar would record a credit to interest revenue of 1. 1/1/21 Debit Credit 6/30/21 2. 12/31 6) On January 1, 2021, Rupar Retailers purchased $100,000 of Anand Company bonds at a premium of $5,000. The Anand bonds pay 7% interest but were purchased when the market

Answer 1

Question - (5)

Answer -

Journal of Rupar Retailers

Date	General journal	Debit ($)	Credit ($)
1/1/2021	Investment [Given in question] Discount on bond investment [Difference] Cash [Given in question]	100000 - -	- 5000 95000
6/30/2021	Cash [($100000*6%) / 2] Discount on bond investment [Difference] Interest revenue [($95000*7%) / 2]	3000 325	- - 3325
12/31/2021	Cash [($100000*6%) / 2] Discount on bond investment [Difference] Interest revenue [($95000+325)*7%) / 2]	3000 336 -	- - 3336