On January 1, 2017, Sweet Company Purchased

On January 1, 2017, Sweet Company purchased 11% bonds, having a maturity value of $312,000, for $ 336,270. 95. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1, of each year. Sweet Company uses the effective-interest method to allocate amortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows2017 $333,900 2020 $321,8002018 $320,900 2021 $312,0002019 $320,000(a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entries to record the interest revenue and recognition(c) Prepare the journal entry to record the recognition of fair value for 2018No Date Account Titles and Explanation Debit Credit(a) ______________ ______________________________ ______________ ______________________ ______________________________ ___________________ _______________________(b)______________ ____________________________ _____________________ _________________________ ___________________________ ____________________ ____________________________ ___________________________ _________________ _______________________________ (To record interest received) _______________________________ _____________________ _______________________________ _____________________________ ____________________________ _____________________________ (To record fair value adjustment)(c)_______________ ______________________________ __________________________ _____________________________ ______________________ ______________________________ ______________________

Originally posted 2018-07-09 20:53:17. Republished by Blog Post Promoter