I humble request answer fast please -dl1. On January 1, 2020, Novotna Company purchased $1,000,000, 6 % bonds of Aguirre Co. for$947,574. The bonds were purchased to yield 8% interest. Interest is payable semiannually onJuly 1 and January 1. The bonds mature on January 1, 2023. Novotna Company uses theeffective-interest method to amortize discount or premium. On July 1, 2022, Novotna Companysold the bonds for $1,050,000 after receiving interest to meet its liquidity needs.If the fair value of Aguirre bonds is $1,200,000 on December 31, 2021, prepare the necessaryadjusting entry. (Assume the fair value adjustment balance on December 31, 2020, is a creditof $3.000.)

The potential profit or loss on an investment or asset that hasn't yet been sold is referred to as…

1. On January 1, 2020, Novotna Company purchased $1,000,000, 6 % bonds of Aguirre Co. for $947,574. The bonds were purchased to yield 8% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2023. Novotna Company uses the sold the bonds for $1,050,000 after receiving interest to meet its liquidity needs. If the fair value of Aguirre bonds is $1,200,000 on December 31, 2021, prepare the necessary adjusting entry. (Assume the fair value adjustment balance on December 31, 2020, is a credit of $3.000.)

1. On January 1, 2020, Novotna Company purchased $1,000,000, 6 % bonds of Aguirre Co. for $947,574. The bonds were purchased to yield 8% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2023. Novotna Company uses the sold the bonds for $1,050,000 after receiving interest to meet its liquidity needs. If the fair value of Aguirre bonds is $1,200,000 on December 31, 2021, prepare the necessary adjusting entry. (Assume the fair value adjustment balance on December 31, 2020, is a credit of $3.000.)

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 1MC

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2. On January 1, 2020, Novotna Company purchased $1,000,000, 6% bonds of Aguirre Co. for $947,574. The bonds were purchased to yield 8% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2023. Novotna Company uses the effective-interest method to amortize discount or premium. Assume the bond is classified as available for sale. The fair value of Aguirre bonds is $960,686 on December 31, 2020 and $975,122 on December 31, 2021. Prepare the necessary adjusting entry on December 31, 2021