Patton Company purchased $1,600,000 of 10% bonds of Scott Company on January 1, 2022. The bonds...
Patton Company purchased $1,600,000 of 10% bonds of Scott Company on January 1, 2022. The bonds mature January 1, 2032; interest is payable each July 1 and January 1. The market effective yield is 8%. Patton Company uses the effective-interest method and plans to hold these bonds to maturity. Provide necessary journal entries on the bond investment for 2022.
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Patton Company purchased $1,600,000 of 10% bonds of Scott
Company on January 1, 2022. The bonds...
6. Patton Company purchased S600,000 of 10% bonds of Scott Co. on Jan urchased S600,000 of...
6. Patton Company purchased S600,000 of 10% bonds of Scott Co. on Jan urchased S600,000 of 10% bonds of Scott Co. on January 1, 2018, paying S564,150. The bonds mature January 1, 2028: interest is payable each July 1 an discount of $35.850 provides an effective yield of 11%. Patton Company uses th method and plans to hold these bonds to maturity. effective yield of 11%. Patton Company uses the effective interest On July 1, 2018, Patton Company should increase...
Multiple Choice Question 70 Carla Vista Company purchased $1250000 of 10% bonds of Scott Company on...
Multiple Choice Question 70 Carla Vista Company purchased $1250000 of 10% bonds of Scott Company on January 1, 2018, paying $1170375. The bonds mature January 1, 2028; interest is payable each July 1 and January 1. The discount of $54625 provides an effective yield of 11 Carla Vista Company uses the effective interest method and plans to hold these bonds to maturity For the year ended December 31, 2018, Carla Vista Company should report interest revenue from the Scott Company...
Multiple Choice Question 69 Sheridan Company purchased $1150000 of 9 bends of Scott Company on January...
Multiple Choice Question 69 Sheridan Company purchased $1150000 of 9 bends of Scott Company on January 1, 2018 paying $1074375. The bonds mature January 1, 2028; interest is payable each July 1 and January 1 The discount of $75625 provides an effective yield of 104. Sheridan Company uses the effective interest method and plans to hold these bonds to maturity On July 1, 2018, Sheridan Company should increase its Debt Investments account for the Scott Company bonds by $1969 $3938...
Free Company purchased $1,500,000 of 10% bonds of Carter Company on January 1, 2021, paying $1,410,375....
Free Company purchased $1,500,000 of 10% bonds of Carter Company on January 1, 2021, paying $1,410,375. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $89,625 provides an effective yield of 11%. Free Company uses the effective-interest method and plans to hold these bonds to maturity. For the year ended December 31, 2021, Free Company should report interest revenue on their Income Statement from the Carter Company bonds of: Answer:
On January 1, 2017, Teal Company purchased 8% bonds having a maturity value of $440,000, for...
On January 1, 2017, Teal Company purchased 8% bonds having a maturity value of $440,000, for $477,069.47. The bonds provide the bondholders with a 6% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Teal Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category Prepare the journal entry at the date of the bond purchase Prepare a bond amortization...
On January 1, 2020, Kingbird Company purchased $420,000, 10% bonds of Aguirre Co. for $389,086. The...
On January 1, 2020, Kingbird Company purchased $420,000, 10% bonds of Aguirre Co. for $389,086. The bonds were purchased to yield 12% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025. Kingbird Company uses the effective-interest method to amortize discount or premium. On January 1, 2022, Kingbird Company sold the bonds for $390,653 after receiving interest to meet its liquidity needs. Schedule of Interest Revenue and Bond Discount Amortization—Effective-Interest Method Bonds...
On January 1, 2017, Crane Company purchased 12% bonds, having a maturity value of $304,000, for...
On January 1, 2017, Crane Company purchased 12% bonds, having a maturity value of $304,000, for $327,047.70. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Crane Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows....
On January 1, 2020, Ivanhoe Company purchased 11% bonds, having a maturity value of $320,000 for...
On January 1, 2020, Ivanhoe Company purchased 11% bonds, having a maturity value of $320,000 for $344,893.28. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Ivanhoe Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows....
On January 1, 2020, Swifty Company purchased 11% bonds, having a maturity value of $289,000 for...
On January 1, 2020, Swifty Company purchased 11% bonds, having a maturity value of $289,000 for $311,481.74. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Swifty Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows....
On January 1, 2020, Blue Company purchased 11% bonds, having a maturity value of $314,000 for...
On January 1, 2020, Blue Company purchased 11% bonds, having a maturity value of $314,000 for $338,426.53. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Blue Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows....
6. Patton Company purchased S600,000 of 10% bonds of Scott Co. on Jan urchased S600,000 of 10% bonds of Scott Co. on January 1, 2018, paying S564,150. The bonds mature January 1, 2028: interest is payable each July 1 an discount of $35.850 provides an effective yield of 11%. Patton Company uses th method and plans to hold these bonds to maturity. effective yield of 11%. Patton Company uses the effective interest On July 1, 2018, Patton Company should increase...
Multiple Choice Question 70 Carla Vista Company purchased $1250000 of 10% bonds of Scott Company on January 1, 2018, paying $1170375. The bonds mature January 1, 2028; interest is payable each July 1 and January 1. The discount of $54625 provides an effective yield of 11 Carla Vista Company uses the effective interest method and plans to hold these bonds to maturity For the year ended December 31, 2018, Carla Vista Company should report interest revenue from the Scott Company...
Multiple Choice Question 69 Sheridan Company purchased $1150000 of 9 bends of Scott Company on January 1, 2018 paying $1074375. The bonds mature January 1, 2028; interest is payable each July 1 and January 1 The discount of $75625 provides an effective yield of 104. Sheridan Company uses the effective interest method and plans to hold these bonds to maturity On July 1, 2018, Sheridan Company should increase its Debt Investments account for the Scott Company bonds by $1969 $3938...
Free Company purchased $1,500,000 of 10% bonds of Carter Company on January 1, 2021, paying $1,410,375. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $89,625 provides an effective yield of 11%. Free Company uses the effective-interest method and plans to hold these bonds to maturity. For the year ended December 31, 2021, Free Company should report interest revenue on their Income Statement from the Carter Company bonds of: Answer:
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