On January 1.2018, Ellison Company purchased 12% bonds, having a maturity value of C800,000, for €860,652. The bondsprovide the bondholders with a 10% yield. They are dated January 1, 2018, and mature January 1. 2023, with interestreceivable December 31 of each year.CashInterestPremium Carrying AmountFair ValueDateReceivedRevenueAmortizedof Bonds01/01/2018860.65231/12/2018€96.000€86.065€ 9,935850,717849,00031/12/201996.00085,07210,928839.789842.152The journal entry to be recorded 31/12/2018, Includes

Scheduled of interest revenue and bond premium amortization 12%bond sold to yield 10% Date Cash…

On january 1, 2018. Ellison Company purchased 12% bond provide the bondholders with a 10% yield. They are dated receivable December 31 of each year. Premium Carn Amortized Cash Interest Date Revenue Received 01/01/2018 31/12/2018 €96.000 €86.065 € 9.935 31/12/2019 96.000 85.072 10.928

On january 1, 2018. Ellison Company purchased 12% bond provide the bondholders with a 10% yield. They are dated receivable December 31 of each year. Premium Carn Amortized Cash Interest Date Revenue Received 01/01/2018 31/12/2018 €96.000 €86.065 € 9.935 31/12/2019 96.000 85.072 10.928

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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