On January 1, 2016, Blue Spruce and Lois Company purchased 12% bonds having a maturity value of $354,000 for $380,838. The bonds provide the…

On January 1, 2016, Blue Spruce and Lois Company purchased 12% bonds having a maturity value of $354,000 for $380,838.44. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2016, and mature January 1, 2021, with interest receivable December 31 of each year. Blue Spruce and Lois Company uses the effective interest method to allocate unamortized discount or premium. The bonds are carried at FV-OCI. The fair value of the bonds at December 31 of each year-end is as follows:

2016

Place New Order
It's Free, Fast & Safe

"Looking for a Similar Assignment? Order now and Get a Discount!