S15-2 Accounting for held-to-maturity investments On January 1, 2014, the Gamekeeper's Restaurant decides to invest in Lake Turner bonds. The bonds mature on December 31, 2018, and pay interest on December 31 at 6% annually. The market rate of interest was 6% on 2014, so the $100,000 maturity value bonds sold for face value. Gamekeeper's in tends to hold the bonds until December 31, 2018. June 30 and January 1, Requirements 1. Journalize the transactions related to Gamekeeper's investment in Lake Turner bonds during 2014. 2. In what category would Gamekeeper's report the investment on the December 31, 2014, balance sheet?
S15-2 Accounting for held-to-maturity investments On January 1, 2014, the Gamekeeper's Restaurant decides to invest in Lake Turner bonds. The bonds mature on December 31, 2018, and pay interest on December 31 at 6% annually. The market rate of interest was 6% on 2014, so the $100,000 maturity value bonds sold for face value. Gamekeeper's in tends to hold the bonds until December 31, 2018. June 30 and January 1, Requirements 1. Journalize the transactions related to Gamekeeper's investment in Lake Turner bonds during 2014. 2. In what category would Gamekeeper's report the investment on the December 31, 2014, balance sheet?
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
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 7C
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