On january 1, 2016, ithaca corp. purchases cortland inc. bonds that have a face value of $150,000. the cortland bonds have a stated interest rate of 6%. interest is paid semiannually on june 30 and december 31, and the bonds mature in 10 years. for bonds of similar risk and maturity, the market yield on particular dates is as follows: january 1, 2016 7.0% june 30, 2016 8.0% december 31, 2016 9.0% required:
1. calculate the price ithaca would have paid for the cortland bonds on january 1, 2016 (ignoring brokerage fees), and prepare a journal entry to record the purchase.
2. prepare all appropriate journal entries related to the bond investment during 2016, assuming ithaca accounts for the bonds as a held-to-maturity investment. ithaca calculates interest revenue at the effective interest rate as of the date it purchased the bonds.
3. prepare all appropriate journal entries related to the bond investment during 2016, assuming that ithaca chose the fair value option when the bonds were purchased, and that ithaca determines fair value of the bonds semiannually. ithaca calculates interest revenue at the effective interest rate as of the date it purchased the bonds.

Identifying type and normal balances of accounts lo c4 for each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense, (2) identify the normal balance of the account, and (3) select debit (dr.) or credit (cr.) to identify the kind of entry that would increase the account balance.

Who is better at multi-tasking? in business, employees are often asked to perform a complex task when their atten-tion is divided (i.e., multi-tasking). human factors (may 2014) published a study designed to determine whether video game players are better than non–video game play-ers at multi-tasking. each in a sample of 60 college stu-dents was classified as a video game player or a non-player. participants entered a street crossing simulator and were asked to cross a busy street at an unsigned intersec-tion. the simulator was designed to have cars traveling at various high rates of speed in both directions. during the crossing, the students also performed a memory task as a distraction. two variables were measured for each student: (1) a street crossing performance score (measured out of 100 points) and (2) a memory task score (measured out of 20 points). the researchers found no differences in either the street crossing performance or memory task score of video game players and non-gamers. “these results,” say the researchers, “suggest that action video game players [and non-gamers] are equally susceptible to the costs of dividing attention in a complex task”

Trey morgan is an employee who is paid monthly. for the month of january of the current year, he earned a total of $4,538. the fica tax for social security is 6.2% of the first $118,500 earned each calendar year, and the fica tax rate for medicare is 1.45% of all earnings for both the employee and the employer. the amount of federal income tax withheld from his earnings was $680.70. his net pay for the month is .