Tsunami sushi purchases 130000 of 5-year 6 bonds from deep, Financial Accounting

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Tsunami sushi purchases 130000 of 5-year 6 bonds from deep

Tsunami Sushi purchases $130,000 of 5-year, 6% bonds from Deep Sea Explorers, on January 1. Management intends to hold the debt securities to maturity. For bonds of similar risk and maturity, the market rate is 7%. Tsunami paid $124,594 for the bonds. It receives interest semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31 is $124,000.

Required:

1., 2. & 3.

Record the necessary entries regarding the bonds.

Journal Entry Worksheet:

1) Record the purchase of bonds.

2) Record the receipt of first semi annual interest revenue.

3) Record the receipt of second semi annual interest revenue.

At what amount will Tsunami Sushi report its investment in the December 31 balance sheet?

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Financial Accounting: Tsunami sushi purchases 130000 of 5-year 6 bonds from deep

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Financial Accounting: Tsunami sushi purchases 130000 of 5-year 6 bonds from deep

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