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 |
Homework Answers
| 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) |
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On January 1, 2019, Rain Technology purchased at par $80,000,
5%, bonds of Lightyear Services Company....
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....
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of similar risk and maturity the market yield was 9%. Interest is
paid semiannually on June 30 and December 31. Federal determines
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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 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...
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...
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face amount of $850 million on January 1, 2021. The bonds sold for
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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
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