Question
Please help me finish! Astro Mile & Co. owns vast amounts of corporate bonds. Suppose Astro...
Please help me finish!
Astro Mile & Co. owns vast amounts of corporate bonds. Suppose Astro Mile buys $500,000 of BitterCo bonds at face value on January 2, 2018. The BitterCo bonds pay interest at the annual rate of 7% on June 30 and December 31 and mature on December 31, 2022. Astro Mile intends to hold the investment until maturity. Requirements 1. Journalize any required 2018 entries for the bond investment. 2. How much cash interest will Astro Mile receive each year from BitterCo? 3. How much interest revenue will Astro Mile report during 2018 on this bond investment? Requirement 1. Journalize any required 2018 entries for the bond investment. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing Astro Mile's investment on January 2, 2018. Date Accounts and Explanation Debit Credit 2018 Jan. 2 Held-to-Maturity Debt Investments 500,000 Cash 500,000 Question Viewer Purchased investment in bonds. | Debit Credit Next, journalize the receipt of cash interest on June 30, 2018. Date Accounts and Explanation 2018 Jun. 30 Cash Interest Revenue Received cash interest.
Answers
--Requirement 1:
>Remaining journal entries
Date Accounts title Debit Credit 30-Jun Cash $17,500 Interest Revenue ($500000 x 7% x 6m/12m) $17,500 (to record receipt of intetesT) 31-Dec Cash $17,500 Interest Revenue ($500000 x 7% x 6m/12m) $17,500 (to record receipt of intetesT) >[2] Cash interest received each year = $ 500000 x 7% = $ 35000
>[3] Interest revenue for 2018 = $ 35,000
Similar Solved Questions
1 answers
Price per visit Quantity demanded Quantity supplied $20 300 150 25 275 175 30 250 200...
Price per visit Quantity demanded Quantity supplied $20 300 150 25 275 175 30 250 200 35 225 225 40 200 250 45 175 275 50 150 300 If one of the physicians moves to another city, reducing quantity supplied by 25 at each price, what are t...
1 answers
Chapter 13, Problem 032 (a) What is the gravitational potential energy of a two-particle system with...
Chapter 13, Problem 032 (a) What is the gravitational potential energy of a two-particle system with masses 7.0 kg and 2.1 kg, if they are separated by 2.9 m? If you triple the separation between the particles, how much work is done (b) by the gravitational force between the particles and (c) by you...
1 answers
Page 38: E1-34B, E1-35B E1-34B. Analyze business transactions using the accounting equation. (LO 4). Enter each...
Page 38: E1-34B, E1-35B E1-34B. Analyze business transactions using the accounting equation. (LO 4). Enter each trans- action into the accounting equation. Then, calculate the (1) amount of assets owned by Izzy's Ice Cream Shop at the end of its first month of business and (2) the amount of net ...
1 answers
Question 25 4 pts A diffraction grating has a diffraction grating constant d = 2000 nm....
Question 25 4 pts A diffraction grating has a diffraction grating constant d = 2000 nm. (a) Identify which of the following colors (wavelengths) can be observed in the third-order diffraction by calculating the angles at which they can be observed: 11 = 750 nm; 12 = 700 nm; 13 = 650 nm 14 = 600 nm; ...
1 answers
Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are...
Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 130 100 % Variable expenses 78 60 Contribution margin $ 52 40 % Fixed expenses are $86,000 per month and the company is s...
1 answers
Need help with D please 3. A student followed the procedure of this experiment to determine...
Need help with D please 3. A student followed the procedure of this experiment to determine the percent Naoci in a commercial bleaching solution that was found in the basement of an abandoned house. The student diluted 50.00 mL of the commercial bleaching solution to 250 mL in a volumetric flask, a...
1 answers
A rectangle has a perimeter of 12m
A rectangle has a perimeter of 12m. if each side is a whole number of meters, what are the possible dimensions for the length and width? List them and please explain your answer....
1 answers
Which of the following is NOT correct? Multiple Choice If market value of equity of a...
Which of the following is NOT correct? Multiple Choice If market value of equity of a corporation is the only information you know, you cannot determine its book value of equity. When it comes to compound interest, interest earned in each period is actually increasing over time/ Simple interest mean...
1 answers
Q2: Suppose that a collection of data was given to you in order to provide an...
Q2: Suppose that a collection of data was given to you in order to provide an initial analysis. However, you noticed that the data given includes the attribute age. The age values for the data tuples are listed in an ascending order as follows: Q2: Suppose that a collection of data was given to you ...
1 answers
4. Given: Fio2 0.21, Pb-747 mm Hg, Paco2-50 mm Hg, Pao2 54 mm Hg, R 0.80...
4. Given: Fio2 0.21, Pb-747 mm Hg, Paco2-50 mm Hg, Pao2 54 mm Hg, R 0.80 Fio2 1.0, Pb-747 mm Hg, Paco2 50 mm Hg, Pao2 548 mm Hg Find: PAO2 mm Hg (on room air) mm Hg (on room air) A-aDO2 Is the A-aDo2 normal (on room air)? Was the response to oxygen therapy normal? What was the major cause of hypoxem...
1 answers
A 5.0-kg object is pulled along a horizontal surface at a constant speed by an 11.5...
A 5.0-kg object is pulled along a horizontal surface at a constant speed by an 11.5 N force acting 30degree above the horizontal. How much work is done by this force as the object moves 7.4 m? 78 j 82 J 85 J 74 J 43 j A trunk is pulled by a constant horizontal force of 12 N at an angle of 15degree a...
1 answers
-44 Q1): For the signal below, Sketch the AM modulated signal where: . u=1 Carrier =...
-44 Q1): For the signal below, Sketch the AM modulated signal where: . u=1 Carrier = 4 cos(6000t) A Time |-1 t What is the problem with this modulated signal? 7 i B 1 FF T: III III C Activate Win...
1 answers
How does Poynting Theorem relate to Lenz law or vice versa? Hypothetical: If Lenz was neglected...
How does Poynting Theorem relate to Lenz law or vice versa? Hypothetical: If Lenz was neglected how is Poynting Theorem effected?...
1 answers
Please kindly make solution and answers visible. thanks Suppose that the amount of time that students...
please kindly make solution and answers visible. thanks Suppose that the amount of time that students spend studying in the library in one sitting is normally distributed with mean 46 minutes and standard deviation 18 minutes. A researcher observed 8 students who entered the library to study. Rou...
1 answers
10. (5 points) Consider data with integer keys 28, 21, 11, 47, 36, 19, 32 in...
10. (5 points) Consider data with integer keys 28, 21, 11, 47, 36, 19, 32 in that order inserted into a hash table of size 7 and hashing function is h(key) = k % 7. Show a chaining hash table after doing the insertions:...
1 answers
Payroll practitioners must be compliant with
payroll practitioners must be compliant with...
1 answers
1. A patient presents in your surgery with an inability to maintain blood sugar levels in...
1. A patient presents in your surgery with an inability to maintain blood sugar levels in long periods (20 hours) between meals. Tests show that glucose is converted to lactate normally in liver in the well-fed state, and that pyruvate carboxylase and phosphoenolpyruvate carboxykinase have normal ac...
1 answers
Branson Today Publishers completed the following investment transactions during 2018 and 2019 Click the icon to...
Branson Today Publishers completed the following investment transactions during 2018 and 2019 Click the icon to view the transactions) Requirements 1. Journal Branson Today's investment transactions. Explanations are not required. 2 On December 31, 2018. how would the Lovely stock bew ed and at ...
1 answers
I need to create a loop that will run until an appropriate tank radius has been...
I need to create a loop that will run until an appropriate tank radius has been found that will hold the liquid under these conditions. The program needs to display the radius as an answer in the command window. Thank you clear all,clc r = 1; % radius (m) h = 10; % height (m) F = 15; % flowrate (m^...
1 answers
8.8) 8.14) Predict the major product of the following reaction. HBr peroxides • You do not...
8.8) 8.14) Predict the major product of the following reaction. HBr peroxides • You do not have to consider stereochemistry. • You do not have to explicitly draw H atoms. We were unable to transcribe this image...