1.) Leonard Technologies invests $54,000 to acquire $54,000 face value, 10%, five−year corporate bonds on December...
1.) Leonard Technologies invests $54,000 to acquire $54,000 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?
2.) On July 7, University Bank lent $550,000 to Jazz Music Shop on a 60 day, 7% note. What is the maturity value of the note? (Use a 360−day year and round answers to the nearest dollar.)
Homework Answers
1) Journal entry
| date | account and explanation | Debit | Credit |
| Dec 31,2018 | Cash (54000*10%*6/12) | 2700 | |
| Interest revenue | 2700 | ||
2) Maturity value = 550000+(550000*7%*60/360) = 556417
Add Answer to:
1.) Leonard Technologies invests $54,000 to acquire $54,000
face value, 10%, five−year corporate bonds on December...
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, 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 debit to Interest Revenue for $3.400 OB....
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....
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...
In 2018, Hasbro Inc. issued 10% bonds with a face value of $6,000,000. These bonds mature...
In 2018, Hasbro Inc. issued 10% bonds with a face value of $6,000,000. These bonds mature in the five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $5,558,400 to yield 12%. Hasbro uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2018? (Round your answer to the nearest dollar.) *Please explain. I know the answer, my method is incorrect.
on January 1,2020, Wildcat company purchased $93,000 of 10% bonds at face value. The bonds pay...
on January 1,2020, Wildcat company purchased $93,000 of 10% bonds at face value. The bonds pay interest semiannually on January 1 and July 1. The fair value of the bonds at December 31, 2020 is $107,000. There is no balance in the Fair value adjustment account. Prepare the appropriate journal entries for the bonds 2020 assuming the financial statements are prepared on a calendar year basis and the bonds are classified as A. trading securities B. Available for sale securities...
On January 1, 2018, Wildcat Company spent $80,695.66 to purchase bonds with face value of 100,000....
On January 1, 2018, Wildcat Company spent $80,695.66 to purchase bonds with face value of 100,000. The stated rate on the bonds are 7%. The bonds are to be held to maturity. The bonds pay interest semiannually on June 30 and December 31. These bonds will mature in 5 years since the date of purchase. Required: Prepare the appropriate journal entry to record the acquisition of the bonds. What is the annual YTM? (3.) Record the first two interest payments.
Problem 1 On January 1, 2018, Wildcat Company spent $80,695.66 to purchase bonds with face value...
Problem 1 On January 1, 2018, Wildcat Company spent $80,695.66 to purchase bonds with face value of 100,000. The stated rate on the bonds are 7%. The bonds are to be held to maturity. The bonds pay interest semiannually on June 30 and December 31. These bonds will mature in 5 years since the date of purchase. Required: (1.) Prepare the appropriate journal entry to record the acquisition of the bonds. (2.) What is the annual YTM? (3.) Record the...
On January 1 of the current year, the Barton Corporation issued 10% bonds with a face...
On January 1 of the current year, the Barton Corporation issued 10% bonds with a face value of $79,000. The bonds are sold for $76,630. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, five years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 is a.$7,900 b.$8,374 c.$658 d.$2,370
On January 1 of the current year, Barton Corporation issued 6% bonds with a face value...
On January 1 of the current year, Barton Corporation issued 6% bonds with a face value of $87,000. The bonds are sold for $82,650. The bonds pay interest semiannually on June 30 and December 31, and the maturity date is December 31, five years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 is Oa. $435 Ob. $6,525 Oc. $2,610 Od. $6,090
On January 1 of the current year, Barton Corporation issued 8% bonds with a face value...
On January 1 of the current year, Barton Corporation issued 8% bonds with a face value of $103,000. The bonds are sold for $97,850. The bonds pay interest semiannually on June 30 and December 31, and the maturity date is December 31, five years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 is a.$9,785 b.$515 c.$9,270 d.$4,120
Leonard Technologies invests $68,000 to acquire $68,000 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 debit to Interest Revenue for $3.400 OB....
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....
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...
Problem 1 On January 1, 2018, Wildcat Company spent $80,695.66 to purchase bonds with face value of 100,000. The stated rate on the bonds are 7%. The bonds are to be held to maturity. The bonds pay interest semiannually on June 30 and December 31. These bonds will mature in 5 years since the date of purchase. Required: (1.) Prepare the appropriate journal entry to record the acquisition of the bonds. (2.) What is the annual YTM? (3.) Record the...
On January 1 of the current year, Barton Corporation issued 6% bonds with a face value of $87,000. The bonds are sold for $82,650. The bonds pay interest semiannually on June 30 and December 31, and the maturity date is December 31, five years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 is Oa. $435 Ob. $6,525 Oc. $2,610 Od. $6,090
Most questions answered within 3 hours.
-
A student takes a multiple-choice test that has 10 questions.
Each question has two choices. The...
asked 20 minutes ago -
Willie Keeler has a lifetime batting average of 0.341. Assume
that Willie Keeler came to bat...
asked 21 minutes ago -
Which of the following has the highest boiling point?
A) 0.5m NaCl
B) 0.5m C6H12O6
C)...
asked 41 minutes ago -
12. A firm is producing at an output level where
AR = MC > AC >...
asked 37 minutes ago -
Radovilsky Manufacturing Company, in Hayward, California,
makes flashing lights for toys. The company operates its production...
asked 40 minutes ago -
As an athlete exercises, sweat is produced and evaporated to
jelp maintain a proper body temperature....
asked 39 minutes ago -
Which of these macromolecules is most prevalent (by mass) in the
environment? What particular challenge does...
asked 41 minutes ago -
Consider two stocks. Stock A has a standard deviation of 46% and
stock B has a...
asked 45 minutes ago -
Give a unary language (using only input alphabet ∑={1} )that is
not Turing- recognizable and prove...
asked 56 minutes ago -
1. Write the balanced net reaction for a Ti (s) | TiCl2 (aq) ||
InCl3 (aq)...
asked 53 minutes ago -
3) Answer the following questions:please respond in one
paragraph
In your opinion, what are the crucial...
asked 1 hour ago -
Assume that the readings at freezing on a batch of thermometers
are normally distributed with a...
asked 1 hour ago