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E9.14( LO_(4))(Debt Investment Entries-FV-OCI) On July 1,2023, Miron Aggregates Ltd. purchased 6% bonds with a...

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Accounting

E9.14( LO_(4))(Debt Investment Entries-FV-OCI) On July 1,2023, Miron Aggregates Ltd. purchased 6% bonds with a maturity value of $100,000 for $103,585. The bonds provide the bondholders with a 5% yield. The bonds mature four years later, on July 1,2027, with interest receivable June 30 and December 31 of each year. Miron uses the effective interest method to allocate unamortized discount or premium. The bonds are accounted for using the FV-OCI model with recycling. Miron has a calendar year end. The fair value of the bonds at December 31,2023 and 2024, was $103,400 and $102,200, respectively. Assume fair value adjustments are recorded at year end only. Immediately after collecting interest on December 31,2024, the bonds were sold for $102,200. Instructions a. Prepare the journal entry at the date of the bond purchase. b. Prepare a bond amortization schedule to December 31,2024. Round amounts to the nearest dollar. Why is Cash Received $3000, not $6000?

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