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Prestige Company purchased bonds of Progressive Enterprises on July 1,2023. The bonds ...

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Accounting

Prestige Company purchased bonds of Progressive Enterprises on July 1,2023. The bonds
pay interest semi-annually, on January 1 and July 1 of each year. Prestige has a year end of
December 31. Other information pertaining to the investment follows:
Coupon rate for the Progressive bonds
On July 2,2025, Prestige Company sold this investment at the following
rate:
Prestige Company follows ASPE and accounts for this investment using the amortized cost
method and the effective interest method.
Required:
Calculate the amount paid by Prestige Company to purchase the bond
investment. (2 marks)
Prepare an amortization schedule for Prestige Company's bond invesment for
the first 4 payments. (2 marks)
Prepare the journal entries required by Prestige to account for the bond
investment on each of the following dates:
(a) July 1,2023(0.5 marks)
(b) December 31,2023(1.5 marks)
(c) July 1,2024(1.5 marks)
(d) July 2,2025(2.5 marks)....................................Step by step solution please.
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