Ligeville Ltd purchased 6%, 5-year bonds newly issued on January 1, 2020 for $676,452.24 having a maturity value of $800,000. The bonds provide the bondholders with a 10% yield. Interest is receivable on July 1st and January 1st each year. Ligeville Ltd holds the bonds to maturity. Show the journal entry at the date of purchase   Show the bond amortization schedule   Show the journal entries at July 1, 2020 and Dec 31st 2020

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Ligeville Ltd purchased 6%, 5-year bonds newly issued on January 1, 2020 for $676,452.24 having a maturity value of $800,000. The bonds provide the bondholders with a 10% yield. Interest is receivable on July 1st and January 1st each year. Ligeville Ltd holds the bonds to maturity.

  • Show the journal entry at the date of purchase

 

  • Show the bond amortization schedule

 

  • Show the journal entries at July 1, 2020 and Dec 31st 2020
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