Homework Answers
| No. | Account titles and explanation | Debit | Credit |
| a. | Debt investment - Held to maturity | $63,098 | |
| Cash | $63,098 | ||
| b. | Cash ($68,000*10%) | $6,800 | |
| Debt investment - Held to maturity | 772 | ||
| Interest income ($63,098*12%) | $7,572 |
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Question 11 Wildhorse Company purchased, on January 1, 2017, as a held-to-maturity investment, $68,000 of the...
Carla Company purchased, on January 1, 2017, as a held-to-maturity investment, $66,000 of the 8%, 5-year...
Carla Company purchased, on January 1, 2017, as a
held-to-maturity investment, $66,000 of the 8%, 5-year bonds of
Chester Corporation for $60,996, which provides an 10%
return.
Prepare Carla’s journal entries for (a) the purchase of the
investment, and (b) the receipt of annual interest and discount
amortization. Assume effective-interest amortization is used.
(Round answers to 0 decimal places, e.g. 1,225. Credit
account titles are automatically indented when amount is entered.
Do not indent manually. If no entry is required,...
Brief Exercise 17-1 Monty Company purchased, on January 1, 2017, as a held-to-maturity investment, $85,000 of...
Brief Exercise 17-1 Monty Company purchased, on January 1, 2017, as a held-to-maturity investment, $85,000 of the 10%, 5- year bonds of Chester Corporation for $78,873, which provides an 12% return. Prepare Monty's journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used. (Round answers to 0 decimal places, e.g. 1,225. Credit account titles are automatically indented when amount is entered. Do not indent manually. If...
Brief Exercise 17-1 Skysong Company purchased, on January 1, 2017, as a held-to-maturity investment, $65,000 of...
Brief Exercise 17-1 Skysong Company purchased, on January 1, 2017, as a held-to-maturity investment, $65,000 of the 10%, 5-year bonds of Chester Corporation for $60,314, which provides an 12% return. Prepare Skysong's journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used (Round answers to o decimal places, e.g. 1,225. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no...
Sheridan Corporation purchased on January 1, 2020, as a held-to-maturity investment, $52,000 of the 7%, 5-year...
Sheridan Corporation purchased on January 1, 2020, as a held-to-maturity investment, $52,000 of the 7%, 5-year bonds of Harrison, Inc. for $56,551, which provides a 5% return. The bonds pay interest semiannually. Prepare Sheridan's journal entries for (a) the purchase of the investment, and (b) the receipt of semiannual interest and premium amortization. Assume effective- interest amortization is used. (Round answers to 0 decimal places, e.g. 5,125. Credit account titles are automatically indented when amount is entered. Do not indent...
CALORADOR PRINR VRSON Brief Exercise 17-1 DACK NEXT Stellar Company purchased, on January 1, 2017, as...
CALORADOR PRINR VRSON Brief Exercise 17-1 DACK NEXT Stellar Company purchased, on January 1, 2017, as a held-to-maturity investment, $73,000 of the t, S-year bonds of Chester Corporation for $67,465, which provides an 10% retum Prepare Stelar's journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amartization. Assume effective-interest amertization is used. (Round answers to o decmal places, eg. 1,225. Credit account titles are automatically indented when amount is entered. Do...
Larkspur Corporation purchased, as a held-to-maturity investment, $55,000 of the 8%, 4-year bonds of Harns Inc....
Larkspur Corporation purchased, as a held-to-maturity investment, $55,000 of the 8%, 4-year bonds of Harns Inc. for $58,861, which provides a 6% return. The bonds pay interest semiannually. Prepare Larkspur's journal entries for (a) the purchase of the investment, and (b) the receipt of semiannual interest and premium amortization. Assume effective-interest amortization is used. (Round answers to O decimal places, e.g. 5,125. Credit account titles are automatically indented when amount is entered. De not indent manually. If no entry is...
Brief Exercise 17-2 Culver Company purchased, on January 1, 2017, as an available-for-sale security, $74,000 of...
Brief Exercise 17-2 Culver Company purchased, on January 1, 2017, as an available-for-sale security, $74,000 of the 1196, 5-year bonds of Chester Corporation for $68,794, which provides an 13% Prepare Culver's journal entries for (a) the purchase of the investment, (b) the receipt of annual interest and discount amortization, and (c) the year-end fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) The bonds have a year-end fair value of $70,300. (Round answers to 0 decimal...
Larkspur Corporation purchased, as a held-to-maturity investment, $55,000 of the 8%, 4-year bonds of Harrison, Inc....
Larkspur Corporation purchased, as a held-to-maturity investment, $55,000 of the 8%, 4-year bonds of Harrison, Inc. for $58,861, which provides a 6% return bonds pay interest semiannually. Prepare Larkspur's journal entries for (a) the purchase of the investment, and (b) the receipt of semiannual interest and premium amortization. Assume effects interest amortization is used. (Round answers to decimal places, e.g. 5,125. Credit account titles are automatically indented when amount is ent Do not indent manually. If no entry is required,...
On January 1, 2017, Metlock Company purchased 9% bonds having a maturity value of $210,000 for...
On January 1, 2017, Metlock Company purchased 9% bonds having a maturity value of $210,000 for $227,221 68. The bonds provide the bondholders th a 7% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Metlock 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. (Enter answers to...
Please explain * Question 1 Wildhorse Ltd. purchased a patent on September 1, 2017 for $41,860....
Please explain
* Question 1 Wildhorse Ltd. purchased a patent on September 1, 2017 for $41,860. At the time of purchase, Wildhorse estimated that the patent's economic benefits would last until the end of 2021 fiscal year. Wildhorse's fiscal year-end is December 31. On April 1. 2020, Wildhorse sold the patent to another company. Prepare the journal entry to record the sale, assuming Wildhorse sold the patent for $21,705. (Credit account titles are automatically indented when amount is entered. Do...
Carla Company purchased, on January 1, 2017, as a
held-to-maturity investment, $66,000 of the 8%, 5-year bonds of
Chester Corporation for $60,996, which provides an 10%
return.
Prepare Carla’s journal entries for (a) the purchase of the
investment, and (b) the receipt of annual interest and discount
amortization. Assume effective-interest amortization is used.
(Round answers to 0 decimal places, e.g. 1,225. Credit
account titles are automatically indented when amount is entered.
Do not indent manually. If no entry is required,...
Brief Exercise 17-1 Monty Company purchased, on January 1, 2017, as a held-to-maturity investment, $85,000 of the 10%, 5- year bonds of Chester Corporation for $78,873, which provides an 12% return. Prepare Monty's journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used. (Round answers to 0 decimal places, e.g. 1,225. Credit account titles are automatically indented when amount is entered. Do not indent manually. If...
Brief Exercise 17-1 Skysong Company purchased, on January 1, 2017, as a held-to-maturity investment, $65,000 of the 10%, 5-year bonds of Chester Corporation for $60,314, which provides an 12% return. Prepare Skysong's journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used (Round answers to o decimal places, e.g. 1,225. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no...
Sheridan Corporation purchased on January 1, 2020, as a held-to-maturity investment, $52,000 of the 7%, 5-year bonds of Harrison, Inc. for $56,551, which provides a 5% return. The bonds pay interest semiannually. Prepare Sheridan's journal entries for (a) the purchase of the investment, and (b) the receipt of semiannual interest and premium amortization. Assume effective- interest amortization is used. (Round answers to 0 decimal places, e.g. 5,125. Credit account titles are automatically indented when amount is entered. Do not indent...
CALORADOR PRINR VRSON Brief Exercise 17-1 DACK NEXT Stellar Company purchased, on January 1, 2017, as a held-to-maturity investment, $73,000 of the t, S-year bonds of Chester Corporation for $67,465, which provides an 10% retum Prepare Stelar's journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amartization. Assume effective-interest amertization is used. (Round answers to o decmal places, eg. 1,225. Credit account titles are automatically indented when amount is entered. Do...
Larkspur Corporation purchased, as a held-to-maturity investment, $55,000 of the 8%, 4-year bonds of Harns Inc. for $58,861, which provides a 6% return. The bonds pay interest semiannually. Prepare Larkspur's journal entries for (a) the purchase of the investment, and (b) the receipt of semiannual interest and premium amortization. Assume effective-interest amortization is used. (Round answers to O decimal places, e.g. 5,125. Credit account titles are automatically indented when amount is entered. De not indent manually. If no entry is...
Brief Exercise 17-2 Culver Company purchased, on January 1, 2017, as an available-for-sale security, $74,000 of the 1196, 5-year bonds of Chester Corporation for $68,794, which provides an 13% Prepare Culver's journal entries for (a) the purchase of the investment, (b) the receipt of annual interest and discount amortization, and (c) the year-end fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) The bonds have a year-end fair value of $70,300. (Round answers to 0 decimal...
Larkspur Corporation purchased, as a held-to-maturity investment, $55,000 of the 8%, 4-year bonds of Harrison, Inc. for $58,861, which provides a 6% return bonds pay interest semiannually. Prepare Larkspur's journal entries for (a) the purchase of the investment, and (b) the receipt of semiannual interest and premium amortization. Assume effects interest amortization is used. (Round answers to decimal places, e.g. 5,125. Credit account titles are automatically indented when amount is ent Do not indent manually. If no entry is required,...
On January 1, 2017, Metlock Company purchased 9% bonds having a maturity value of $210,000 for $227,221 68. The bonds provide the bondholders th a 7% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Metlock 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. (Enter answers to...
Please explain
* Question 1 Wildhorse Ltd. purchased a patent on September 1, 2017 for $41,860. At the time of purchase, Wildhorse estimated that the patent's economic benefits would last until the end of 2021 fiscal year. Wildhorse's fiscal year-end is December 31. On April 1. 2020, Wildhorse sold the patent to another company. Prepare the journal entry to record the sale, assuming Wildhorse sold the patent for $21,705. (Credit account titles are automatically indented when amount is entered. Do...
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