Do not give image format On January 1, 2019, Culver and Lois Company purchased 12% bonds having a maturity value of $252,000 for $271,105.56. The bondsprovide the bondholders with a 10% yield. They are dated January 1, 2019, and mature on January 1, 2024, with interest receivableon December 31 of each year. Culver and Lois Company uses the effective interest method to allocate unamortized discount orpremium. The bonds are carried at FV-OCI. The fair value of the bonds at December 31 of each year-end is as follows:20192020(a)$269,000Prepare the journal entries to record the interest received and recognition of fair value for 2019. (Credit account titles areautomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titlesand enter o for the amounts. Round answers to 2 decimal places, e.g. 52.75.)Dec. 31$260,000Date Account Titles and ExplanationDec. 31(To record collection of interest)(To record fair value adjustment)DebitIICredit

In FV OCI Investments, the investments are revalued at their fair value at the end of the period.…

On January 1, 2019, Culver and Lois Company purchased 12% bonds having a maturity value of $252,000 for $271,105.56. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2019, and mature on January 1, 2024, with interest receivable on December 31 of each year. Culver and Lois Company uses the effective interest method to allocate unamortized discount or premium. The bonds are carried at FV-OCI. The fair value of the bonds at December 31 of each year-end is as follows: 2019 2020 (a) Prepare the journal entries to record the interest received and recognition of fair value for 2019. (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. Round answers to 2 decimal places, e.g. 52.75.) $269,000 $260,000 Date Account Titles and Explanation Dec. 31 Dec. 31 (To record collection of interest) (To record fair value adjustment) Debit I Credit

On January 1, 2019, Culver and Lois Company purchased 12% bonds having a maturity value of $252,000 for $271,105.56. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2019, and mature on January 1, 2024, with interest receivable on December 31 of each year. Culver and Lois Company uses the effective interest method to allocate unamortized discount or premium. The bonds are carried at FV-OCI. The fair value of the bonds at December 31 of each year-end is as follows: 2019 2020 (a) Prepare the journal entries to record the interest received and recognition of fair value for 2019. (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. Round answers to 2 decimal places, e.g. 52.75.) $269,000 $260,000 Date Account Titles and Explanation Dec. 31 Dec. 31 (To record collection of interest) (To record fair value adjustment) Debit I Credit

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PB: Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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