S15-2 Accounting for held-to-maturity investments On January 1, 2014, the Gamekeeper's Restaurant decides to invest in Lake Turner bonds. The bonds mature on December 31, 2018, and pay interest on December 31 at 6% annually. The market rate of interest was 6% on 2014, so the $100,000 maturity value bonds sold for face value. Gamekeeper's in tends to hold the bonds until December 31, 2018. June 30 and January 1, Requirements 1. Journalize the transactions related to Gamekeeper's investment in Lake Turner bonds during 2014. 2. In what category would Gamekeeper's report the investment on the December 31, 2014, balance sheet?

S15-2 Accounting for held-to-maturity investments On January 1, 2014, the Gamekeeper's Restaurant decides to invest in Lake Turner bonds. The bonds mature on December 31, 2018, and pay interest on December 31 at 6% annually. The market rate of interest was 6% on 2014, so the $100,000 maturity value bonds sold for face value. Gamekeeper's in tends to hold the bonds until December 31, 2018. June 30 and January 1, Requirements 1. Journalize the transactions related to Gamekeeper's investment in Lake Turner bonds during 2014. 2. In what category would Gamekeeper's report the investment on the December 31, 2014, balance sheet?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 7C

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