Homework Answers
On February 1, $50,000 of the bonds were sold at 103.
Any selling price above 100 indicates gain on sale.
Hence, gain on sale of investments = 50,000 x 3%
= $1,500
Hence, on February 1, Investment will be credited by $50,000 and gain on sale of investments will be credited by $1,500.
Correct option is (a)
Please ask if you have any query related to the question. Thank you
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Problem 17-07
Your answer is partially correct. Try again.
The following information relates to the debt securities
investments of Culver Company.
1.
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having a par value of $310,800 at 100 plus accrued interest.
Interest is payable April 1 and October 1.
2.
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Problem 17-07
Your answer is partially correct. Try again.
The following information relates to the debt securities
investments of Culver Company.
1.
On February 1, the company purchased 11% bonds of Gibbons Co.
having a par value of $310,800 at 100 plus accrued interest.
Interest is payable April 1 and October 1.
2.
On April 1, semiannual interest is received.
3.
On July 1, 8% bonds of Sampson, Inc. were purchased. These
bonds with a par value of $192,000 were...
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