Your answer is partially correct. Try again. Carow Corporation purchased, as a h

Question

Your answer is partially correct. Try again. Carow Corporation purchased, as a held-to-maturity investment, $65,100 of the 8%, 6-year bonds of Harrison, Inc. for $71,580, which provides a 6% return. The bonds pay interest semiannually. Prepare Carow’s journal entries for (a) the purchase of the investment, and (b) the receipt of semiannual interest and premium amortization. Assume effective-interest amortization is used

I need help finding the Debt Investments and Interest Revenue. I found the other 2 posts, and I thought I was doing it correctly, but I can't seem to get it correct.

Explanation / Answer

Journal entries

Amortisation Schedule

65,100@4% = 2604

Description Debit Credit Investment - bonds $65,100 Premium on bonds    6,480 To Cash $71,580 Cash $2,604 To premium on bonds $457 To Interest revenue 2147 Cash 2604 to interest revenue 2134 To Premium on bonds   470

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