Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 4 1 pts on january 1,2021, rr purchas

Question 4 1 pts On January 1,2021, RR purchased $100,000 of...

70.2K

Verified Solution

Question

Accounting

Question 4
1 pts
On January 1,2021, RR purchased $100,000 of Apple Company bonds at a premium of $5,000. The bonds pay 7% interest but were purchased when the market interest rate was 6% for bonds of similar risk and maturity. The bonds pay interest semiannually on June 30 and December 31 of each year. RR accounts for the bonds as a trading security. On December 31,2021, journal entry to record the second period of interest, RR would record a credit to interest revenue of:
A) $3,336.
B) $3,140.
C) $3,000.
D) $3,500.
image

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

Medical Sciences
1.2K views

what's the peptide pathway of the Neuropeptide y (NPY) and design a theoretical drug that activates...

Chemistry
1.2K views

For each reaction, identify the Bronsted-Lowry acid, the Bronsted-Lowry base, the conjugate acid, and the conjugate base- HBr(aq)+H2O(l)→H3O+(aq)+Br−(aq)...

Advance Math
1.2K views

Let D3 be the symmetry group of an equilateral triangle. Show that the subgroup H ?...

Calculus
1.2K views

1 Draw the level sets 2 1 0 1 2 of the following scalar functions...

Algebra
1.2K views

State whether each equation represents a direct joint inverse or combined variation Then name the...

Algebra
1.2K views

Use the given function f to answer parts a through f below X 4 f...

Accounting
1.2K views

The costs included in the cost per equivalent unit using the weighted average method are

Accounting
1.2K views

Required information [The following information applies to the questions displayed below] Kubin Company's relevant range...

Accounting
1.2K views

Use the following financial statements and additional information

Accounting
1.2K views

Dake Corporation's relevant range of activity is 2,800 units to 6,000 units. When it produces...

Accounting
1.2K views

he main reason for the financial statements and reporting for any city or municipality is...

Finance
1.2K views

When adding real estate to an asset allocation program that currently includes only stocks, bonds,...