Harvey Corp. purchases 10% bonds with face values of $200,000 on January 1, 2017. The bonds are dated January 1, 2017, and will mature on January 1, 2022. The bonds will pay interest on December 31 of each year. Harvey pays $215,970 for the bonds to yield 8% (market rate). Harvey accounts for the bonds at FV-OCI. Harvey’s fiscal year-end is December 31. Fair values of the bonds on December 31, 2017, and 2018 respectively are:
Prepare a table to show interest income, interest received and premium or discount amortization for the bonds for each of the five years.
Prepare all the necessary journal entries at the end of 2017, to record interest income and adjustments to fair value.
Prepare all the necessary journal entries at the end of 2018, to record interest income and adjustments to fair value.
The fair value of the bonds on Dec. 31, 2019, was 198,800. 50% of the bonds were sold on June 1, 2020, at 98. Prepare all journal entries for the sale
HowOur Website Works
1. FILL IN OUR SIMPLE ORDER FORM
It has never been easier to place your order. Fill in the initial requirements
in the small order form located on the home page and press “continue” button
to proceed to the main order form or press “order” button in the header menu.
Starting from there let our system intuitively guide you through all steps of
2. PROCEED WITH THE PAYMENT
All your payments are processed securely through PayPal. This enables us to
guarantee a 100% security of your funds and process payments swiftly.
3. WRITER ASSIGNMENT
Next, we match up your order details with the most qualified freelance writer
in your field.
4. WRITING PROCESS
Once we have found the most suitable writer for your assignment, they start
working on a masterpiece just for you!
Once finished, your final paper will be available for download through your
personal dashboard. You will also receive an email notification with a copy of
your paper attached to it. Sometimes, the writer may leave a note for you
about the order in case there is any additional information that they need to