Homework Answers
| Period ended | Interest revenue | Cash interest received | Discount on Bond investment amortized | Carrying value of Bond investment |
| 1/1/2021 | 661135 | |||
| 7/1/2021 | 661135*4%*6/12 = 13222.7 | 720000*3%*6/12= 10800 | 13222.7-10800= 2422.7 | 661135+2422.7= 663557.7 |
| 12/31/2021 | 663557.7*4%*6/12 = 13271.15 | 10800 | 2471.15 | 663557.7+2471.15= 666028.85 |
| Total | 26493.85 |
There are two semiannual period in a year comprising of 6 months each.
Amount of debt investment reported in balance sheet as on 12/31/2021 : 666028.85 (rounded to 666,029)
Amount reported in Income statement related to debt investment :Interest income of 26493.85 (rounded to 26494)
Add Answer to:
On January 1, 2021, Lance Brothers Enterprises purchased $720,000 of 3%, 10-year bonds from Carlin, Inc...
Lance Brothers Enterprises acquired $720,000 of 3% bonds, dated July 1, on July 1, 2021, as...
Lance Brothers Enterprises acquired $720,000 of 3% bonds, dated July 1, on July 1, 2021, as a long-term investment. Management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 4% for bonds of similar risk and maturity. Lance Brothers paid $600,000 for the investment in bonds and will receive interest semiannually on June 30 and December 31. Prepare the journal entries (a) to record Lance Brothers' investment in the bonds on...
Lance Brothers Enterprises acquired $605,000 of 3% bonds, dated July 1, on July 1, 2021, as...
Lance Brothers Enterprises acquired $605,000 of 3% bonds, dated July 1, on July 1, 2021, as a long-term investment. Management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 4% for bonds of similar risk and maturity. Lance Brothers paid $525,000 for the investment in bonds and will receive interest semiannually on June 30 and December 31. Prepare the journal entries (a) to record Lance Brothers’ investment in the bonds on...
Lance Brothers Enterprises acquired $665,000 of 3% bonds, dated July 1, on July 1, 2021, as...
Lance Brothers Enterprises acquired $665,000 of 3% bonds, dated July 1, on July 1, 2021, as a long-term investment Management has the positive intent and ability to hold the bonds until maturity. The market interest rate yield) was 4 for bonds of similar risk and maturity Lance Brothers paid $585.000 for the investment in bonds and will receive interest semiannually on June 30 and December Prepare the journal entries (a) to record Lance Brothers' investment in the bonds on July...
Lance Brothers Enterprises acquired $545,000 of 5% bonds, dated July 1, on July 1, 2021, as...
Lance Brothers Enterprises acquired $545,000 of 5% bonds, dated July 1, on July 1, 2021, as a long-term investment Management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Lance Brothers paid $465,000 for the investment in bonds and will receive interest semiannually on June 30 and December 31. Prepare the journal entries (a) to record Lance Brothers' investment in the bonds on...
Lance Brothers Enterprises acquired $725,000 of 2% bonds, dated July 1, on July 1, 2018, as...
Lance Brothers Enterprises acquired $725,000 of 2% bonds, dated July 1, on July 1, 2018, as a long-term investment. Management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 3% for bonds of similar risk and maturity. Lance Brothers paid $645,000 for the investment in bonds and will receive interest semiannually on June 30 and December 31. Prepare the journal entries (a) to record Lance Brothers’ investment in the bonds on...
Lance Brothers Enterprises acquired $560,000 of 4% bonds, dated July 1. on July 1, 2018, as...
Lance Brothers Enterprises acquired $560,000 of 4% bonds, dated July 1. on July 1, 2018, as a long-term investment Management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 5% for bonds of similar risk and maturity. Lance Brothers paid $480,000 for the investment in bonds and will receive interest semiannually on June 30 and December Prepare the journal entries (a) to record Lance Brothers' investment in the bonds on July...
Lance Brothers Enterprises acquired $590,000 of 2% bonds, dated July 1, on July 1, 2016, as...
Lance Brothers Enterprises acquired $590,000 of 2% bonds, dated July 1, on July 1, 2016, as a long-term investment. Management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 3% for bonds of similar risk and maturity. Lance Brothers paid $510,000 for the investment in bonds and will receive interest semiannually on June 30 and December 31 Prepare the journal entries (a) to record Lance Brothers' investment in the bonds on...
On January 1, 2021, Essence Communications issued $720,000 of its 10-year, 8% bonds for $630,272. The...
On January 1, 2021, Essence Communications issued $720,000 of its 10-year, 8% bonds for $630,272. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. Essence Communications records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the market interest rate for bonds of similar risk and maturity was 9%. The bonds are not traded on an active exchange. The decrease...
On January 1, 2021, Essence Communications issued $720,000 of its 10-year, 8% bonds for $630,272. The...
On January 1, 2021, Essence Communications issued $720,000 of its 10-year, 8% bonds for $630,272. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. Essence Communications records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the market interest rate for bonds of similar risk and maturity was 9%. The bonds are not traded on an active exchange. The decrease...
On January 1, 2021, JUNE Enterprises issued 10% bonds dated January 1, 2021, with a face...
On January 1, 2021, JUNE Enterprises issued 10% bonds dated January 1, 2021, with a face amount of $19.0 million. The bonds mature in 2030 (10 years). For bonds of similar risk and maturity, the market yield is 8%. Interest is paid semiannually on June 30 and December 31. Required: 1. Determine the price of the bonds at January 1, 2021. 2. Prepare the journal entry to record the bond issuance by Mania on January 1, 2021. 3. Prepare the...
Lance Brothers Enterprises acquired $720,000 of 3% bonds, dated July 1, on July 1, 2021, as a long-term investment. Management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 4% for bonds of similar risk and maturity. Lance Brothers paid $600,000 for the investment in bonds and will receive interest semiannually on June 30 and December 31. Prepare the journal entries (a) to record Lance Brothers' investment in the bonds on...
Lance Brothers Enterprises acquired $665,000 of 3% bonds, dated July 1, on July 1, 2021, as a long-term investment Management has the positive intent and ability to hold the bonds until maturity. The market interest rate yield) was 4 for bonds of similar risk and maturity Lance Brothers paid $585.000 for the investment in bonds and will receive interest semiannually on June 30 and December Prepare the journal entries (a) to record Lance Brothers' investment in the bonds on July...
Lance Brothers Enterprises acquired $545,000 of 5% bonds, dated July 1, on July 1, 2021, as a long-term investment Management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Lance Brothers paid $465,000 for the investment in bonds and will receive interest semiannually on June 30 and December 31. Prepare the journal entries (a) to record Lance Brothers' investment in the bonds on...
Lance Brothers Enterprises acquired $560,000 of 4% bonds, dated July 1. on July 1, 2018, as a long-term investment Management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 5% for bonds of similar risk and maturity. Lance Brothers paid $480,000 for the investment in bonds and will receive interest semiannually on June 30 and December Prepare the journal entries (a) to record Lance Brothers' investment in the bonds on July...
Lance Brothers Enterprises acquired $590,000 of 2% bonds, dated July 1, on July 1, 2016, as a long-term investment. Management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 3% for bonds of similar risk and maturity. Lance Brothers paid $510,000 for the investment in bonds and will receive interest semiannually on June 30 and December 31 Prepare the journal entries (a) to record Lance Brothers' investment in the bonds on...
On January 1, 2021, Essence Communications issued $720,000 of its 10-year, 8% bonds for $630,272. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. Essence Communications records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the market interest rate for bonds of similar risk and maturity was 9%. The bonds are not traded on an active exchange. The decrease...
Most questions answered within 3 hours.
-
Ripples in a pond travel at a velocity of 3 m/s with one peak
passing a...
asked 1 minute ago -
A man stands on the roof of a building of height 13.0 mm and
throws a...
asked 7 minutes ago -
Based on the range, which of the following sets of scores has
the greatest variability? 3,...
asked 11 minutes ago -
The extent to which assets are financed by borrowed funds and
other liabilities is indicated by:...
asked 1 hour ago -
Explain in detail
Germany is the fifth largest economy
explain what goods and services Germany specializes...
asked 1 hour ago -
The density of platinum is 21.45 g/mL. If a cube of platinum
with a mass of...
asked 1 hour ago -
Accounts Receivable
Sales
A/R Posting
Extended Sales Invoice
Packing Slip
Compare invoice to packing slip 2...
asked 1 hour ago -
Michaella, age 23, is a full-time law student and is claimed by
her parents as a...
asked 1 hour ago -
Why are polymers not typically casted into products?
asked 1 hour ago -
When rolling a die 129 times, what is the probability of rolling
a 6 no more...
asked 2 hours ago -
4. A call option currently sells for $7.75. It has a strike
price of $85 and...
asked 1 hour ago -
1.
You need to prepare 10.0 liters of an acid aqueous solution with a
pH of...
asked 1 hour ago