The following bond transactions occurred during 2024 for the YU Institute of Higher Learning (YU) and Page Ltd.: Mar. 1 YU issued $16.20 million seven-year, 5% bonds at 102 (this means 102% of face value) at a price to yield a market interest rate of 4.66%. The bonds pay interest semi-annually on September 1 and March 1. Page Ltd. purchased $5.40 million of YU's bonds at 102 as a long-term investment to be held to maturity. YU paid the semi-annual interest on the bonds. Mar. 1 Sept. 1 Your answer is partially correct. Prepare all required entries for YU, the investee, to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. Round answers to O decimal places, e.g. 5,125.) Date Mar. 1 Sept. 1 Account Titles and Explanation Cash Bonds Payable Interest Expense Loss on Bond Redemption Cash Debit 5508000 1600 135000 Credit 5508000 6664 128336

The following bond transactions occurred during 2024 for the YU Institute of Higher Learning (YU) and Page Ltd.: Mar. 1 YU issued $16.20 million seven-year, 5% bonds at 102 (this means 102% of face value) at a price to yield a market interest rate of 4.66%. The bonds pay interest semi-annually on September 1 and March 1. Page Ltd. purchased $5.40 million of YU's bonds at 102 as a long-term investment to be held to maturity. YU paid the semi-annual interest on the bonds. Mar. 1 Sept. 1 Your answer is partially correct. Prepare all required entries for YU, the investee, to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. Round answers to O decimal places, e.g. 5,125.) Date Mar. 1 Sept. 1 Account Titles and Explanation Cash Bonds Payable Interest Expense Loss on Bond Redemption Cash Debit 5508000 1600 135000 Credit 5508000 6664 128336

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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