Bramble Company purchased, on January 1, 2020, as a held-to-maturity investment, $71,000 of the 8%, 5-year bonds of Chester Corporation for $65,617, which provides an 10% return. Prepare Bramble's journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used. (Round answers to 0 decimat places, e.g. 1,225. 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 O for the amounts.) No. Account Titles and Explanation (a) (b) Debit Credit DOO 10000
Bramble Company purchased, on January 1, 2020, as a held-to-maturity investment, $71,000 of the 8%, 5-year bonds of Chester Corporation for $65,617, which provides an 10% return. Prepare Bramble's journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used. (Round answers to 0 decimat places, e.g. 1,225. 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 O for the amounts.) No. Account Titles and Explanation (a) (b) Debit Credit DOO 10000
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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answer in text form please (without image), Note: .Every entry should have narration please
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