Date
Recelved
Revenue Amortization
of Bands
12/31/18
$163,356
12/31/19 $9,000 $6.534
$2,466
160,890
12/31/20
9,000
6,436
2,564
158,326
12/31/21
9,000
6,333
2,667
155,659
12/31/22
9,000
6.226
2,774
152,885
12/31/23
9,000
6,115
2,885
150,000
The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end.
12/31/19 12/31/20 12/31/21 12/31/22 12/31/23
Amortized cost $160,890 $158,326 $155,659 5152,885 $150,000
Fair value
$160,300
$160,500 $157,600 $154,100 $150,000
(a) Prepare the journal entry to record the purchase of these bonds on December 31, 2018, assuming the bonds are classified as
held-to-maturity securities.
(b) Prepare the journal entry related to the held-to-maturity bonds for 2019.
(c)
Prepare the journal entry related to the held-to-maturity bonds for 2021.
(d)
Prepare the journal entry to record the purchase of these bonds, assuming they are classified as available-for-sale
(e)
Prepare the journal entries related to the available-for-sale bonds for 2019.
(f)
Prepare the journal entries related to the available-for-sale bonds for 2021.
