Tsunami sushi purchases 150000 of 5-year 6 bonds from deep


Tsunami Sushi purchases $150,000 of 5-year, 6% bonds from Deep Sea Explorers, on January 1. Management intends to hold the debt securities to maturity. For bonds of similar risk and maturity, the market rate is 7%. Tsunami paid $143,763 for the bonds. It receives interest semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31 is $143,000.

Required:

1,2, and 3: Record the necessary entries regarding the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

4. At what amount will Tsunami Sushi report its investment in the December 31 balance sheet?

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Financial Management: Tsunami sushi purchases 150000 of 5-year 6 bonds from deep
Reference No:- TGS01223789

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