Chapter 9
Investments
477
c) Assume the investor’s accountant is using the amortized cost method. Prepare the journal
entries from the investor’s perspective for the issue date of the bonds, first interest receipt,
first year-end adjustment and cash receipt of principal at maturity on March 1, 2021. (Note:
Do not record the last interest receipt on March 1, 2021.)
Date
Account Title and Explanation
Debit
Credit
