Question

​& Co. owns vast amounts of corporate bonds. Suppose buys of bonds at face value on January​ 2, . The bonds pay interest at the annual rate of ​% on June 30 and December 31 and mature on December​ 31, . intends to hold the investment until maturity. Read the requirementsLOADING.... Requirement 1. How would the bond investment be classified on December​ 31, ​, balance​ sheet? The bond investment will be classified as a ▼ as of December​ 31, .

Answer 1

Bonds held to maturity are recorded at the net carrying value (after any premium or discount amortization is made), but since these bonds were purchased at face value, there is no premium or discount to be amortized. The bonds should be reported at face value as non-current assets since they mature in more than 1 year.

Step-by-step explanation:

all the numbers are missing, so I looked for a similar question:

Otter Creek & Co. Owns vast amount of corporate bonds. Suppose Otter Creek buys $1,200,000 of RoastCo bonds at face value on January 2, 2016. The RoastCo bond spay interest at an annual rate of 3% on June 30 and December 31, and mature on December 31, 2020. Otter Creek intends to hold the investment until maturity.

How would the bond investment be classified on December​ 31, 2016​, balance​ sheet?