Question

Bond Investment Transactions Journalize the entries to record the following selected bond investment transactions for Starks...

Bond Investment Transactions

Journalize the entries to record the following selected bond investment transactions for Starks Products:

For a compound transaction, if an amount box does not require an entry, leave it blank.

a. Purchased for cash $60,000 of Iceline, Inc. 7% bonds at 100 plus accrued interest of $700, paying interest semiannually.

fill in the blank 633f5ef48fda07a_2 fill in the blank 633f5ef48fda07a_3
fill in the blank 633f5ef48fda07a_5 fill in the blank 633f5ef48fda07a_6
fill in the blank 633f5ef48fda07a_8 fill in the blank 633f5ef48fda07a_9

b. Received first semiannual interest payment.

fill in the blank 8788dffa2fa702d_2 fill in the blank 8788dffa2fa702d_3
fill in the blank 8788dffa2fa702d_5 fill in the blank 8788dffa2fa702d_6
fill in the blank 8788dffa2fa702d_8 fill in the blank 8788dffa2fa702d_9

c. Sold $40,000 of the bonds at 103 plus accrued interest of $460.

fill in the blank af968a063034f85_2 fill in the blank af968a063034f85_3
fill in the blank af968a063034f85_5 fill in the blank af968a063034f85_6
fill in the blank af968a063034f85_8 fill in the blank af968a063034f85_9
fill in the blank af968a063034f85_11 fill in the blank af968a063034f85_12
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a. Purchased for cash $60,000 of Iceline, Inc. 7% bonds at 100 plus accrued interest of $700, paying interest semiannually.

a Investment in bonds 60000
Interest receivable 700
Cash 60700

b. Received first semiannual interest payment.

Cash 4200
Interest receivable 700
Interest revenue 3500

c. Sold $40,000 of the bonds at 103 plus accrued interest of $460.

Cash (40000*1.03+460) 41660
Investment in bonds 40000
Interest receivable 460
Gain on sale of investment 1200
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Bond Investment Transactions Journalize the entries to record the following selected bond investment transactions for Starks...
Bond Investment Transactions Journalize the entries to record the following selected bond investment transactions for Starks Products: For a compound transaction, if an amount box does not require an entry, leave it blank. a. Purchased for cash $78,000 of Iceline, Inc. 9% bonds at 100 plus accrued interest of $1,170, paying interest semiannually. b. Received first semiannual interest payment. c. Sold $52,000 of the bonds at 103 plus accrued interest of $590.
Bond Investment Transactions Journalize the entries to record the following selected bond investment transactions for Starks...
Bond Investment Transactions Journalize the entries to record the following selected bond investment transactions for Starks Products: For a compound transaction, if an amount box does not require an entry, leave it blank. a. Purchased for cash $96,000 of Iceline, Inc. 9% bonds at 100 plus accrued interest of $1,440, paying interest semiannually. Investments-Iceline, Inc. Bonds Interest Receivable Cash b. Received first semiannual interest payment. Cash Interest Receivable Interest Revenue c. Sold $64,000 of the bonds at 102 plus accrued...
Bond Investment Transactions Journalize the entries to record the following selected bond investment transactions for Starks...
Bond Investment Transactions Journalize the entries to record the following selected bond investment transactions for Starks Products: For a compound transaction, if an amount box does not require an entry, leave it blank. a. Purchased for cash $60,000 of Iceline, Inc. 6% bonds at 100 plus accrued interest of $600, paying interest semiannually. fill in the blank 35a355049030034_2 fill in the blank 35a355049030034_3 fill in the blank 35a355049030034_5 fill in the blank 35a355049030034_6 fill in the blank 35a355049030034_8 fill in...
Bond Discount, Entries for Bonds Payable Transactions On July 1, 2016, Brower Industries Inc. issued $5,500,000...
Bond Discount, Entries for Bonds Payable Transactions On July 1, 2016, Brower Industries Inc. issued $5,500,000 of 7-year, 11% bonds at a market (effective) interest rate of 12%, receiving cash of $5,244,387. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016. For a compound...
Bond Discount, Entries for Bonds Payable Transactions, Interest Method of Amortizing Bond Discount On July 1,...
Bond Discount, Entries for Bonds Payable Transactions, Interest Method of Amortizing Bond Discount On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $36,000,000 of 20-year, 11% bonds at a market (effective) interest rate of 14%, receiving cash of $28,802,160. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries: For a compound transaction, if an amount box does...
Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells football equipment. On July...
Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers Corporation issued $28,500,000 of 10-year, 11% bonds at a market (effective) interest rate of 10%, receiving cash of $30,275,879. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries with a compound transaction, if an amount box does not require an entry,...
Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Daan Corporation wholesales repair products to...
Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Daan Corporation issued $7,900,000 of 7-year, 10% bonds at a market (effective) interest rate of 7%, receiving cash of $9,194,083. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 2016. For a compound transaction, if an amount box does not require an entry, leave...
Entries for Investment in Bonds, Interest, and Sale of Bonds Gonzalez Company acquired $198,600 of Walker...
Entries for Investment in Bonds, Interest, and Sale of Bonds Gonzalez Company acquired $198,600 of Walker Co., 7% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Gonzalez Company sold $55,800 of the bonds for 97. Journalize entries to record the following in Year 1: For a compound transaction, if an amount box does not require an entry, leave it blank. a. The initial acquisition of the bonds...
Make sure do all parts I'll rate Bond Discount, Entries for Bonds Payable Transactions On July...
Make sure do all parts I'll rate Bond Discount, Entries for Bonds Payable Transactions On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $3,400,000 of 9-year, 10% bonds at a market (effective) interest rate of 12%, receiving cash of $3,031,861. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from...
Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, Year...
Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, Year 1. The following transactions relate to debt investments acquired by Rekya Mart Inc., which has a fiscal year ending on December 31: Year 1 Apr. 1. Purchased $78,000 of Smoke Bay 7%, 10-year bonds at their face amount plus accrued interest of $910. The bonds pay interest semiannually on February 1 and August 1. May 16. Purchased $120,000 of Geotherma Co. 6%, 12-year bonds...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT