Financial Accounting

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Effect of the Retirement of Bond Investment


PAPAGO Inc. invested \$100,000 in a \$100,000 face value, 5%, five-year bond on January 1, 2015. The bond issuer pays interest semiannually on July 1 and December 31 every year. The maturity date is January 1, 2020.

On January 1, 2020, what is the net impact of the retirement of this investment on total assets of PAPAGO Inc. (in $)?