make journal entries for recording interest income and interest received and recognition of FV at dec31, 2023, 2024, and 2025. the entries should be:to record interest collected (3 lines)to record Fair value adjustmentto record interest collected (3 lines)to record Fair value adjustmentto record interest collected (3 lines)to record gain or loss Dont use AI Tools. Thank you On January 1, 2023, Ayayai Limited paid $467,979.40 for 12% bonds with a maturity value of $435,000. The bonds provide thebondholders with a 10% yield. They are dated January 1, 2023, and mature on January 1, 2028, with interest receivable on December31 of each year. Ayayai applies ASPE using the effective interest method, and has a December 31 year end. Assume that Ayayai hopesto make a gain on the bonds as interest rates are expected to fall. Ayayai accounts for the bonds at fair value with changes in valuetaken to net income, and separately recognizes and reports interest income. The fair value of the bonds at December 31 of each yearend is as follows:2023$464,800.002024 $448,050.002025 $446,310.002026 $441,090.002027 $435,000.00

A bond is a financial instrument used by an organization to support its long-term funding needs. The…

Answered: On January 1, 2023, Ayayai Limited paid…

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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make journal entries for recording interest income and interest received and recognition of FV at dec31, 2023, 2024, and 2025. the entries should be: to record interest collected (3 lines) to record Fair value adjustment to record interest collected (3 lines) to record Fair value adjustment to record interest collected (3 lines) to record gain or loss Dont use AI Tools. Thank you

On January 1, 2023, Ayayai Limited paid $467,979.40 for 12% bonds with a maturity value of $435,000. The bonds provide the
bondholders with a 10% yield. They are dated January 1, 2023, and mature on January 1, 2028, with interest receivable on December
31 of each year. Ayayai applies ASPE using the effective interest method, and has a December 31 year end. Assume that Ayayai hopes
to make a gain on the bonds as interest rates are expected to fall. Ayayai accounts for the bonds at fair value with changes in value
taken to net income, and separately recognizes and reports interest income. The fair value of the bonds at December 31 of each year
end is as follows:
2023
$464,800.00
2024 $448,050.00
2025 $446,310.00
2026 $441,090.00
2027 $435,000.00

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