On 1 August 20X4, Baker Sindall LLC, a public company, purchased $50,000 face amount of Shandlie Company 6% coupon bonds for $43,200. The market interest rate was 8% on this date. The bond pays interest semi-annually on 31 July and 31 January. At the fiscal year-end for Baker Sindall, the Shandlie bonds have a market value of $45,000. Required: Prepare the journal entries to record the investment, the investment income and any other needed adjustments at 31 December. The investment is classified as held to maturity and accounted for using amortized cost.

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The Answer of On 1 August 20X4, Baker Sindall LLC, a public company, purchased $50,000 face amount of Shandlie Company 6% coupon bonds for $43,200. The market interest rate was 8% on this date. The bond pays interest semi-annually on 31 July and 31 January. At the fiscal year-end for Baker Sindall, the Shandlie bonds have a market value of $45,000. Required: Prepare the journal entries to record the investment, the investment income and any other needed adjustments at 31 December. The investment is classified as held to maturity and accounted for using amortized cost.

On 1 August 20X4, Baker Sindall LLC, a Public Company