On 1/1/23, Jeckle Technologies Inc. paid $4, 792, 085 to acquire $5,000,000 in bonds that mature in 5 years. The bonds pay interest semi-annually at 6% per annum on 6/30 and 12/31. The fair value of the bonds at 12/31/23 was $4, 930,392. Required:• Prepare the 2023 journal entries if the investment is classified as (i) HTM or (ii) AFS. Assume Jeckle sold the bond investment on 7/1/24 for $4,890,000. Prepare the required journal entries assuming the bond is classified as (i) HTM or (ii) AFS.

On 1/1/23, Jeckle Technologies Inc. paid $4, 792, 085 to acquire $5,000,000 in bonds that mature in 5 years. The bonds pay interest semi-annually at 6% per annum on 6/30 and 12/31. The fair value of the bonds at 12/31/23 was $4, 930,392. Required:• Prepare the 2023 journal entries if the investment is classified as (i) HTM or (ii) AFS. Assume Jeckle sold the bond investment on 7/1/24 for $4,890,000. Prepare the required journal entries assuming the bond is classified as (i) HTM or (ii) AFS.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On 1/1/23, Jeckle Technologies Inc. paid $4, 792, 085 to acquire $5,000,000 in bonds that
mature in 5 years. The bonds pay interest semi - annually at 6% per annum on 6/30 and
12/31. The fair value of the bonds at 12/31/23 was $4, 930, 392. Required: • Prepare the
2023 journal entries if the investment is classified as (i) HTM or (ii) AFS. • Assume Jeckle sold
the bond investment on 7/1/24 for $4,890,000. Prepare the required journal entries
assuming the bond is classified as (i) HTM or (ii) AFS.

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