On 1 June 20X8, Ghana Company purchased $7,400,000 of Monaco Corp. 5.70% bonds, classified as a FVOCI-Bond investment. The bonds pay semi-annual interest each 30 May and 30 November. The market interest rate was 6% on the date of purchase. The bonds mature on 30 May 20X13. (PV of $1, PVA of $1, and PVAD of $1.) a. Calculate the price paid by Ghana Company. (Round time value factor to 5 decimal places. Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) b Construct a table that shows interest revenue reported by Ghana, and the carrying value of the investment, for each interest period for four interest periods. Use the effective-interest method. (Round your answers to the nearest whole dollar amount.) c.Prepare the entries for 20X8 and for 20X9, including the year-end accrual, based on your calculations in requirement 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.). At the year-end, 31 December 20X8 and 31 December 20X9, the fair value of the bonds was $7,550,000 and $6,955,000 respectively. Prepare the entries to record the changes in fair value. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.)
On 1 June 20X8, Ghana Company purchased $7,400,000 of Monaco Corp. 5.70% bonds, classified as a FVOCI-Bond investment. The bonds pay semi-annual interest each 30 May and 30 November. The market interest rate was 6% on the date of purchase. The bonds mature on 30 May 20X13.
(PV of $1, PVA of $1, and PVAD of $1.)
a. Calculate the price paid by Ghana Company. (Round time value factor to 5 decimal places. Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.)
b Construct a table that shows interest revenue reported by Ghana, and the carrying value of the investment, for each interest period for four interest periods. Use the effective-interest method. (Round your answers to the nearest whole dollar amount.)
c.Prepare the entries for 20X8 and for 20X9, including the year-end accrual, based on your calculations in requirement 2. (If no entry is required for a transaction/event, select "No
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