ACCOUNTING PRINCIPLES 222 5/16 >C<
ACCOUNTING PRINCIPLES 222 5/16 >C<
2nd Edition
ISBN: 9781323461525
Author: Horngren
Publisher: PEARSON C
Question
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Chapter 15, Problem S15.2SE
To determine

Concept Introduction:

Bond refers to a financial security which is issued by a business entity for raising funds for long-term. Bond generates return for the investors on a specified date and this return can be variable or fixed.

Requirement 1

To prepare:

Journal entries for the transactions of 2016.

To determine

Requirement 2;

To prepare: Classification of bond investment in the balance sheet at December 31, 2016.

Main solution:

Balance Sheet (Partial)
As at December 31, 2016
Assets  
Non-current asset;  
Long-term investment – Held-to-maturity securities $150000

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