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Assignment 2 1. Metro Company purchased $100,000, 10%, 5-year bonds on January 1, 20x1, with interest payable on July 1 and J
(251000 x 40%) 1/1/x 1. Aquailable for sale Bands 108, 111 Cash 108,111 17/1/18 Cash 5,000 interestrevenice 5.000 12/31/XL li
can you walk me through the calulations?
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Answer #1
1/1/X1 Available-for-Sale Bonds $108111
Cash $108111
7/1/x1 Cash(100,000x10%x6/12) 5000
Interest revenue 5000
12/31/X1 Interest receivable 5000
Unrealised Loss(108111-105000) 3111
Available-for-Sale Bonds 3111
Interest revenue 5000
1/1/X2 Cash(107500+5000) 112500
Loss on sale of bonds(Balancing fig:) 611
Available-for-Sale Bonds 105000
Interest receivable 5000
Unrealised Loss 3111

ANY DOUBTS OR CORRECTIONS?

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