Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. bond (held-to-maturity)investment journalize the e

Bond (Held-to-Maturity)Investment Journalize the entries to record the following selected bond investment transactions for Marr...

60.1K

Verified Solution

Question

Accounting

image

image

Bond (Held-to-Maturity)Investment Journalize the entries to record the following selected bond investment transactions for Marr Products: If an amount box does not require an entry, leave it blank. a. Purchased for cash $120,000 of Hotline Inc. 7% bonds at 100 plus accrued interest of $1,400. Investments-Hotline Inc. Bonds 120,000 0 Interest Receivable 1,400 0 Cash 0 121,400 Feedback Check My Work 0 a. Record the investment at face value. Interest that is receivable on the date of purchase must be recorded as well. b. Received first semiannual interest payment. Cash 4,200 0 Interest Receivable 0 1,400 Interest Revenue 0 2,800 :. Sold $80,000 of the bonds at 103 plus accrued interest of $910. Cash 0 Interest Revenue Gain on Sale of Investments 0 Investments-Hotline Inc. Bonds 80,000 Feedback Check My Work c. Calculate the proceeds: First compute the % x face amount of bonds sold. Next, adjust the amount for any accrued interest and commission. To complete the entry, determine any gain or loss on the transaction. 1. Received face value of remaining bonds at their maturity. Cash 0 Investments-Hotline Inc. Bonds 0

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students