(a) (b) (c) (d) (e) (f) Prepare the journal entry to record the purchase of these bonds on December 31, 2023, assuming the bonds are classified as held-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.
(a) (b) (c) (d) (e) (f) Prepare the journal entry to record the purchase of these bonds on December 31, 2023, assuming the bonds are classified as held-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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
please and thank you
Transcribed Image Text:4
Account Titles and Explanation
+
(To record interest revenue.)
(To record adjustment.)
(To record interest revenue.)
(To record adjustment.)
Debit
11
Credit
Transcribed Image Text:Presented below is an amortization schedule related to Sarasota Company's 5-year, $110,000 bond with a 7% interest
rate and a 4% yield, purchased on December 31, 2023, for $124,691.
Date
12/31/23
12/31/24
12/31/25
12/31/26
12/31/27
12/31/28
(a)
(b)
(c)
(d)
12/31/24
Amortized cost $121,979
Fair value
(e)
(f)
No.
Cash
Interest
Received Revenue
(a)
$7,700
7,700
(b)
7,700
FEB
7,700
7,700
The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end.
121,400
$4,988
4,879
4,766
4,649
4,527
Date
Bond
Premium
Amortization
+
$2,712
2,821
+
2,934
121,000
3,051
3,173
Carrying
Amount
of Bonds
118,000
$124,691
121,979
119,158
116,224
113,173
12/31/25 12/31/26 12/31/27
$119,158
$116,224 $113,173
114,300
110,000
Prepare the journal entry to record the purchase of these bonds on December 31, 2023, assuming the bonds
are classified as held-to-maturity securities.
(List all debit entries before credit entries. Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account
titles and enter 0 for the amounts.)
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.
12/31/28
$110,000
110,000
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.
Account Titles and Explanation
Debit
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