On January 1, 2020, the JES company acquired $600,000, 12%, 5years bonds from JES company....
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On January 1, 2020, the JES company acquired $600,000, 12%, 5years bonds from JES company. The annual yieldtomaturity is 10%, and the interest is paid every June 30 and December 31. This investment is classified as Amortized Cost Investment.
A) Prepare the journal entries in the books of JES from January 1, 2020 to December 31, 2021.
B) Assume the bonds trade at 660,000 and 645,000 on December 31, 2020 and December 31, 2021 respectively. Prepare the adjusting entries on December 31, 2020 and December 31, 2021, to update the fair value of the bo
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