On August 1, 2025, Ivanhoe Company acquired 1220, $1000, 9% bonds at 97 plus accrued interest. The bonds were dated May 1, 2025, and mature on April 30, 2030, with interest paid each October 31 and April 30. The bonds will be added to Ivanhoe's available for-sale portfolio. The entry to record the purchase of the bonds on August 1, 2025 is Debt Investments Interest Receivable Cash Debt Investments Cash 1183400 27450 Debt Investments Interest Revenue Cash 1210850 Debt Investments Interest Revenue Discount on Debt Investments Cash 1220000 27450 1183400 27450 1210850 1210850 36600 1210850 1210850
On August 1, 2025, Ivanhoe Company acquired 1220, $1000, 9% bonds at 97 plus accrued interest. The bonds were dated May 1, 2025, and mature on April 30, 2030, with interest paid each October 31 and April 30. The bonds will be added to Ivanhoe's available for-sale portfolio. The entry to record the purchase of the bonds on August 1, 2025 is Debt Investments Interest Receivable Cash Debt Investments Cash 1183400 27450 Debt Investments Interest Revenue Cash 1210850 Debt Investments Interest Revenue Discount on Debt Investments Cash 1220000 27450 1183400 27450 1210850 1210850 36600 1210850 1210850
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 6E: Investment Premium Amortization Schedule On January 1, 2019, Lynch Company acquired 13% bonds with a...
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![On August 1, 2025, Ivanhoe Company acquired 1220, $1000, 9% bonds at 97 plus accrued interest. The bonds were dated May 1,
2025, and mature on April 30, 2030, with interest paid each October 31 and April 30. The bonds will be added to Ivanhoe's available-
for-sale portfolio. The entry to record the purchase of the bonds on August 1, 2025 is
Debt Investments
Interest Receivable
Cash
Debt Investments
Cash
1183400
27450
Debt Investments
Interest Revenue
Cash
1210850
Debt Investments
Interest Revenue
Discount on Debt Investments
Cash
1220000
27450
1183400
27450
1210850
1210850
36600
1210850
1210850](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7ab2fcdd-e673-450e-8879-48d7de8ef6bd%2Fc7fa0dfd-19a6-4dfb-b497-c0c5d213f237%2Fzeag6l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On August 1, 2025, Ivanhoe Company acquired 1220, $1000, 9% bonds at 97 plus accrued interest. The bonds were dated May 1,
2025, and mature on April 30, 2030, with interest paid each October 31 and April 30. The bonds will be added to Ivanhoe's available-
for-sale portfolio. The entry to record the purchase of the bonds on August 1, 2025 is
Debt Investments
Interest Receivable
Cash
Debt Investments
Cash
1183400
27450
Debt Investments
Interest Revenue
Cash
1210850
Debt Investments
Interest Revenue
Discount on Debt Investments
Cash
1220000
27450
1183400
27450
1210850
1210850
36600
1210850
1210850
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