(Solution) - In auditing the books for Stiller Corporation as of December -(2025 Original AI-Free Solution)

Paper Details

In auditing the books for Stiller Corporation as of December 31, 2013, before the accounts are closed, you find the following long-term investment account balance:
Account: INVESTMENT IN WILSON CHEMICAL 9% BONDS (MATURITY DATE, JUNE 1, 2017)

Instructions:
1. Give the entries that should have been made relative to the investment in bonds, including any adjusting entries that would be made on December 31, the end of the fiscal year. (Assume that bond premium or discount amortization is by the straight-line method and ignore any potential impact of year-to-year market value changes on the accounting for the bonds.)
2. Give the journal entries required at the end of 2013 to correct and bring the accounts up to date in view of the entries actually made.