Joined: 08 Nov 2009
Online Status: Offline Posts: 1
Posted: 08 Nov 2009 at 20:40 | IP Logged
Investor company purchase bonds in
New Inc. at 97 plus accrued interest on June 1, 1999.The par value is $150,000 and the face rate is 4%.Interest is paid annually on July 31 and the
maturity date is Jan 31,2011. Investor company treats this bond as held for trading. Investor companys year end is sept 30. The fair value of the bond on sept 30, 1999 is $148,375. How do we make adjustments to the carrying value to adjust it to the FV of 148,375 at year end??
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot delete your posts in this forum You cannot edit your posts in this forum You cannot create polls in this forum You cannot vote in polls in this forum