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on january 1,2020, genevieve ltd. purchased 6% $100,000 (par value) bonds for 98,163. the bonds...

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Accounting

on january 1,2020, genevieve ltd. purchased 6% $100,000 (par value) bonds for 98,163. the bonds were purchased to yeild 7% Interest is paid on July 1 and January 1 and the bonds On January 1, 2022, Genevieve Ltd. uses the amortized cost method and the effective-interest method to amortize the premium. genevieve has a year end of december 31 and follows ASPE. Required: Prepare the required journal entry on January 1, 2020. (1.5 marks) Prepare the bond amortization schedule. Round all values to the nearest dollar. (7 marks) Prepare the required journal entry on July 1, 2020. (3 marks) What is the carrying value of the investment at December 31 , 2020? (1 marks) Prepare the required journal entries on January 1, 2022. (1.5 marks)

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