Homework Answers
Correct answer---------(d) A credit to interest revenue for $3400
.
Credit for $3400 will be made and interest revenue with a debit to cash.
Interest is received @5 on 68000. since Annual rate is 10% the semiannual rate will be 5%. Interest of 5% on 68000 will be received on December 31.
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Leonard Technologies invests $68,000 to acquire $68,000 face value, 10%, five-year corporate bonds on December 31,...
Leonard Technologies invests $68,000 to acquire $68,000 face value, 12%, five-year corporate bonds on December 31,...
Leonard Technologies invests $68,000 to acquire $68,000 face value, 12%, five-year corporate bonds on December 31, 2014. The bonds will mature on December 31, 2019. The bonds pay interest semiannually on December 31 and June 30 every year until maturity. Assume Leonard Technologies uses a calendar year. Based on the information provided, which of the following will be included in the journal entry for the transaction on December 31, 2018? O A. a debit to Interest Revenue for $8,160 O...
Leonard Technologies invests $62,000 to acquire $62,000 face value, 10%, five-year corporate bonds on December 31,...
Leonard Technologies invests $62,000 to acquire $62,000 face value, 10%, five-year corporate bonds on December 31, 2014. The bonds will mature on December 31, 2019. The bonds pay interest semiannually on December 31 and June 30 every year until maturity. Assume Leonard Technologies uses a calendar year. Based on the information provided, which of the following will be included in the journal entry for the transaction on December 31, 2018? O A. a credit to Interest Revenue for $6,200 OB....
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help asap please On January 1, a company purchased 5%, 10-year corporate bonds for $74,049,340 as...
help asap please
On January 1, a company purchased 5%, 10-year corporate bonds for $74,049,340 as an investment. The bonds have a face amount of $80 million and are priced to yield 5%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31 Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31 Complete this question by entering your answers in...
On January 1, a company purchased 4%, 10-year corporate bonds for $63,842,205 as an investment. The...
On January 1, a company purchased 4%, 10-year corporate bonds for $63,842,205 as an investment. The bonds have a face amount of $75 million and are priced to yield 6%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31 Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31 Complete this question by entering your answers in the tabs below....
Brief Exercise 10-17 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value...
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Woodwick Company issues 10%, five-year bonds, on December 31, 2017, with a par value of $95,000...
Woodwick Company issues 10%, five-year bonds, on December 31, 2017, with a par value of $95,000 and semiannual interest payments Carrying Value $103,011 Semiannual Period-End Unamortized Premium 12/31/2017 6/30/2018 12/31/2018 $8,011 (0) (1) (2) 7,210 6,409 102,210 101,409 Use the above straight-line bond amortization table and prepare journal entries for the following (a) The issuance of bonds on December 31, 2017. (b) The first interest payment on June 30, 2018. (c) The second interest payment on December 31, 2018 View...
Leonard Technologies invests $68,000 to acquire $68,000 face value, 12%, five-year corporate bonds on December 31, 2014. The bonds will mature on December 31, 2019. The bonds pay interest semiannually on December 31 and June 30 every year until maturity. Assume Leonard Technologies uses a calendar year. Based on the information provided, which of the following will be included in the journal entry for the transaction on December 31, 2018? O A. a debit to Interest Revenue for $8,160 O...
Leonard Technologies invests $62,000 to acquire $62,000 face value, 10%, five-year corporate bonds on December 31, 2014. The bonds will mature on December 31, 2019. The bonds pay interest semiannually on December 31 and June 30 every year until maturity. Assume Leonard Technologies uses a calendar year. Based on the information provided, which of the following will be included in the journal entry for the transaction on December 31, 2018? O A. a credit to Interest Revenue for $6,200 OB....
Pretzelmania, Inc., issues 5%, 10-year bonds with a face amount of $68,000 for $68,000 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid semiannually on June 30 and December 31. Required: 1. & 2. Record the bond issue and first interest payment on June 30, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal...
On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 104 resulting in a 4% premium. They had a 20 year term and a stated rate of interest of 7% payable in cash on December 31 of each year. The company amortizes the premium on a straight-line basis. Assuming a straight line amortization of the premium, the journal entry necessary to recognize interest expense on the December 31, Year 1 is...
help asap please
On January 1, a company purchased 5%, 10-year corporate bonds for $74,049,340 as an investment. The bonds have a face amount of $80 million and are priced to yield 5%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31 Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31 Complete this question by entering your answers in...
On January 1, a company purchased 4%, 10-year corporate bonds for $63,842,205 as an investment. The bonds have a face amount of $75 million and are priced to yield 6%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31 Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31 Complete this question by entering your answers in the tabs below....
Brief Exercise 10-17 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $620,000 and a coupon Interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year end and records adjusting entries annually. Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 5%. (Credit account tities are automatically indented when...
Woodwick Company issues 10%, five-year bonds, on December 31, 2017, with a par value of $95,000 and semiannual interest payments Carrying Value $103,011 Semiannual Period-End Unamortized Premium 12/31/2017 6/30/2018 12/31/2018 $8,011 (0) (1) (2) 7,210 6,409 102,210 101,409 Use the above straight-line bond amortization table and prepare journal entries for the following (a) The issuance of bonds on December 31, 2017. (b) The first interest payment on June 30, 2018. (c) The second interest payment on December 31, 2018 View...
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