ZuoTi.Pro
Question

On January 1, 2019, Rain Technology purchased at par $80,000, 5%, bonds of Lightyear Services Company....

On January 1, 2019, Rain Technology purchased at par $80,000, 5%, bonds of Lightyear Services Company. The bonds pay interest quarterly on March 31, June 30, September 30, and December 31. Rain Technology's year ends on December 31. The following information applies to the fair value of Lightyear Services' bonds:

date bond price
12/31/2019 $78,000
12/31/2020 87,000
12/31/2021 81,000

Rain Technology sold the bonds on July 14, 2022, for $83,000.

Record the appropriate journal entry on March 31, 2019.

date general Journal Debit Credit
March 31, 2019
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
March 31,2019 Cash a/c dr (80000*5/10*1/4) 1000
To Interest Income from Bonds a/c 1000
(being interest recived for qtr 1)
0 1
Add a comment
Know the answer?
Add Answer to:
On January 1, 2019, Rain Technology purchased at par $80,000, 5%, bonds of Lightyear Services Company....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Required information (The following information applies to the questions displayed below.) On January 1, 2019. Rain...

    Required information (The following information applies to the questions displayed below.) On January 1, 2019. Rain Technology purchased at par $82,000, 5%, bonds of Lightyear Services Company. The bonds pay interest quarterly on March 31, June 30, September 30, and December 31. Rain Technology's year ends on December 31. The following information applies to the fair value of Lightyear Services' bonds: Bond Price 12/31/2019 $80,000 12/31/2020 89,000 12/31/2021 84,000 Rain Technology sold the bonds on July 14, 2022, for $87,000....

  • Duval Co. issues four-year bonds with a $107,000 par value on January 1, 2019, at a...

    Duval Co. issues four-year bonds with a $107,000 par value on January 1, 2019, at a price of $102,920. The annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. Exercise 10-7 Part 1 1. Prepare a straight-line amortization table for these bonds. (Round your answers to the nearest dollar amount.) Unamortized Discount Carrying Value Semiannual Period-End 1/01/2019 6/30/2019 12/31/2019 6/30/2020 12/31/2020 6/30/2021 12/31/2021 6/30/2022 12/31/2022 2. Prepare journal entries to record the first...

  • On July 1, 2019, Slick Rocks, Inc., purchased at par $350,000, 6 percent bonds of Sandstone...

    On July 1, 2019, Slick Rocks, Inc., purchased at par $350,000, 6 percent bonds of Sandstone Company as an investment that the management intends to hold for a few years but not to maturity. The bonds pay interest each June 30 and December 31. Slick Rocks’ fiscal year ends on December 31. The following information pertains to the price of the Sandstone bonds: Bond Price 12/31/2019 $ 356,000 12/31/2020 352,000 Slick Rocks sold the Sandstone bonds on June 30, 2021,...

  • On July 1, 2019, Slick Rocks, Inc., purchased at par $350,000, 6 percent bonds of Sandstone...

    On July 1, 2019, Slick Rocks, Inc., purchased at par $350,000, 6 percent bonds of Sandstone Company for the trading securities portfolio. The bonds pay interest each June 30 and December 31. Slick Rocks’ fiscal year ends on December 31. The following information pertains to the price of the Sandstone bonds: Bond Price 12/31/2019 $ 356,000 12/31/2020 352,000 Slick Rocks sold the Sandstone bonds on June 30, 2021, at a price of $353,000. Prepare any journal entries that are required...

  • Duval Co. issues four-year bonds with a $118,000 par value on January 1, 2019. at a...

    Duval Co. issues four-year bonds with a $118,000 par value on January 1, 2019. at a price of $113,864. The annual contract rate is 6%, and interest is paid semiannually on June 30 and December 31. Exercise 10-7 Part 1 1. Prepare a straight-line amortization table for these bonds. (Round your answers to the nearest dollar amount.) Semiannual Period End Unmortired D iscount Carrying Value 1/01/2019 6/30/2019 12/31/2019 6/30/2020 12/31/2020 6/30/2021 12/31/2021 6/30/2022 12/31/2022 2. Prepare journal entries to record...

  • Ellis Company issues 9.0%, five-year bonds dated January 1, 2019, with a $480,000 par value. The...

    Ellis Company issues 9.0%, five-year bonds dated January 1, 2019, with a $480,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $499,483. The annual market rate is 8% on the issue date. Required: 1. Compute the total bond interest expense over the bonds' life. 2. Prepare an effective interest amortization table for the bonds’ life. 3. Prepare the journal entries to record the first two interest payments. 1. Compute...

  • EA-4 (Algo) Recording Transactions in the Equity Securities Portfolio LOA-2 On March 10, 2019, Dearden, Inc.,...

    EA-4 (Algo) Recording Transactions in the Equity Securities Portfolio LOA-2 On March 10, 2019, Dearden, Inc., purchased 10,100 shares of Jaffa stock for $53 per share. Management intends to hold the securities long term. Dearden’s year ends on December 31. The following information pertains to the price per share of Jaffa stock: Stock Price 12/31/2019 $ 51 12/31/2020 54 12/31/2021 50 Dearden sold all of the Jaffa stock on September 12, 2022, at a price of $48 per share. Prepare...

  • Dobbs Company issues 5%, two-year bonds, on December 31, 2019, with a par value of $105,000...

    Dobbs Company issues 5%, two-year bonds, on December 31, 2019, with a par value of $105,000 and semiannual interest payments. Unamortized Discount Semiannual Period-End Carrying Value (0) 12/31/2019 (1) (2) 12/31/2020 (3) (4) 12/31/2021 $98,900 100,425 101,950 103,475 105,000 $6,100 4,575 3,050 1,525 6/30/2020 6/30/2021 0 Use the above straight-line bond amortization table and prepare journal entries for the following. Required: (a) The issuance of bonds on December 31, 2019 (b) The first through fourth interest payments on each June...

  • Federal Semiconductors issued 8% bonds, dated January 1, with a face amount of $850 million on...

    Federal Semiconductors issued 8% bonds, dated January 1, with a face amount of $850 million on January 1, 2021. The bonds sold for $771,793,266 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 9%. Interest is paid semiannually on June 30 and December 31. Federal determines interest at the effective rate. Federal elected the option to report these bonds at their fair value. On December 31, 2021, the fair value...

  • Duval Co. issues four-year bonds with a $113,000 par value on January 1, 2019, at a...

    Duval Co. issues four-year bonds with a $113,000 par value on January 1, 2019, at a price of $108,855. The annual contract rate is 6%, and interest is paid semiannually on June 30 and December 31. 1. Prepare a straight-line amortization table for these bonds. (Round your answers to the nearest dollar amount.) Unamortized Discount Carrying Value Semiannual Period-End 1/01/2019 6/30/2019 12/31/2019 6/30/2020 12/31/2020 6/30/2021 12/31/2021 6/30/2022 12/31/2022

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT