Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. use the following information to answer question 1

Use the following information to answer question 13 to 14 On January 1, 2019, Patton...

50.1K

Verified Solution

Question

Accounting

image
Use the following information to answer question 13 to 14 On January 1, 2019, Patton Company invests in a corporate bond with face value: $1,500, maturity: 20 years and coupon rate: 10%. Interest is payable each June 30th and December 31". At the time of the investment is made, the market yield is 11%. Patton pays $ 1,410 for the investment. Patton uses the effective interest method to amortize premium/discount on the investment. Patton plans to hold these bonds to maturity. 13. On June 30, 2019, Patton would post which of the following journal entry to record interest revenue received? A. Debt investment................... 5.10 Cash.. * 150.00 Interest Revenue............... ...5 155.10 B. Premium on Bond.....................$ 2.55 Cash... S 25.00 Interest Revenue................577.55 C. Debt investment...... ..........5 2.55 Cash ....................... 575.00 Interest Revenue........ ... .....577.55 D. Discount on Bond......... .....5 5.10 Cash. ..........$ 150.00 Interest Revenue.................. 155.10 14. For the year ended at December 31", 2019, total interest revenue from the investment is A. $155.28 B. $158.97 C. $155.13 D. $150.00

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

Physics
1.2K views

A man of height 3 2 m wants to see himself in plane mirror from...

Geometry
1.2K views

Intensity 2888 8 20 Peak 60 1 50 P 40 30 20 Procedures 1 2...

Statistics
1.2K views

Marriage Proposals In a survey conducted by TheKnot com 1165 engaged or married women were...

Accounting
1.2K views

Accounting
1.2K views

U Question 3 1 pts Alphabet offers advertising on cost-per-impression basis, which means that an...

Accounting
1.2K views

Determining Merchandise and Costs to be Included or Excluded from Inventory Below is a list...

Accounting
1.2K views

Suppose Decorum makes 450 celing tans in January and 500 in February. Calculate by hand...

Accounting
1.2K views

Question 4: Please discuss the possible conflicts between creditors and shareholders Question 6...

Accounting
1.2K views

Frederick, financial analyst at YTZ Corporation, is examining the behavior of quarterly utility costs for...

Finance
1.2K views

Options are derivative securities, but forward contracts are definitely not True False

Finance
1.2K views

Here is the background information on your task Assessing cient suitability is extremely important. Knowing...

Accounting
1.2K views

On January 1, 2020, Martinez Corporation granted its president a share appreciation rights (SAR) package...