Business, 06.03.2020 07:06 cambamm12

On January 1, 2019, Kelly Corporation acquired bonds with a face value of $500,000 for $483,841.79, a price that yields a 10% effective annual interest rate. The bonds carry a 9% stated rate of interest, pay interest semiannually on June 30 and December 31, are due December 31, 2022, and are being held to maturity.

1. Prepare journal entries to record the purchase of the bonds and the first two interest receipts using the straight-line method of amortization. If required, round your answers to the nearest cent. For compound entries, if an amount box does not require an entry, leave it blank.

June 30 entry

Answers: 2

Show answers

Answers

Answer from: bbysl15

Debt Securities Investment 493,841.79 debit

Discount on D-S Investment 6,158.21 debit

Cash 500,000 credit

--to record bonds purchase--

Cash 22,500 debit

Discount on D-S Investment 769.78 credit

Interest revenue 21,730.22‬ credit

--to record first interest collection--

Interest receivables 22,500 debit

Discount on D-S Investment 769.78 credit

Interest revenue 21,730.22‬ credit

--to record second interest collection--

Explanation:

cost 493,841.79

face value 500,000.00

discount: 6,158.21‬

We divide this over the total payment left:

6,158.21 / 8 = 769,78

interest proceeds

500,000 x 9% / 2 = 22,500.00

amorization (769.78)

Interest revenue 21,730.22‬

Answer from: hiji0206

Explanation:

Face value = 500000

Discount = -16158.21

Fair Value = 483841.79

Amortization Schedule

year Amount Interest repay Closing

6 months 483841.79 0 22500 461341.79

6 months 461341.79 48384.2 22500 487225.96

investment in bond 483841.79

Cash 483841.79

To record the investment at amortized cost.

Cash 22500

Investment 22500

to record the semi annual interest payment

Cash 22500

Investment 25884.2

Interest Income 48384.2

Answer from: Quest

answer; ///i do believe that the correct answer is (

Answer from: Quest

answer; i believe the correct answer is (a) purchase of treasury stock;

Another question on Business

Business, 22.06.2019 21:40

The farmer's market just paid an annual dividend of $5 on its stock. the growth rate in dividends is expected to be a constant 5 percent per year indefinitely. investors require a 13 percent return on the stock for the first 3 years, a 9 percent return for the next 3 years, a 7 percent return thereafter. what is the current price per share? select one: a. $212.40 b. $220.54 c. $223.09 d. $226.84 e. $227.50 previous pagenext page

Answers: 2

Answer

Business, 23.06.2019 02:30

Match each definition in column 1 with a vocabulary word from column 2." some of the entries in column 2 do not apply costs which do not change with the level of output costs which change with the level of output the change in total costs resulting from an increase in output by one unit function showing the quantities of a particular good demanded at a range of price when the quantity supplied of a good is greater than the quantity demanded when the quantity demanded for a particular good is greater than the quantity supplied the price and quantity determined in a market when the supply equals the demand when revenue exceeds costs when costs exceeds revenue output where revenue = costs

Answers: 1

Answer

Business, 23.06.2019 19:00

Multiple-choice questions have a special grading rule determined by your instructor. assume that your instructor has decided to grade these questions in the following way: if you submit an incorrect answer to a multiple-choice question with n options, you will lose 1/(nâ’1) of the credit for that question. just like the similar multiple-choice penalty on most standardized tests, this rule is necessary to prevent random guessing.if a multiple-choice question has five answer choices and you submit one wrong answer before getting the question correct, how much credit will you lose for that part of the question? multiple-choice questions have a special grading rule determined by your instructor. assume that your instructor has decided to grade these questions in the following way: if you submit an incorrect answer to a multiple-choice question with options, you will lose of the credit for that question. just like the similar multiple-choice penalty on most standardized tests, this rule is necessary to prevent random guessing.if a multiple-choice question has five answer choices and you submit one wrong answer before getting the question correct, how much credit will you lose for that part of the question? 100% 50% 33% 25% 20%

Answers: 1

Answer

Business, 23.06.2019 19:30

You are offered a free ticket to see the chicago cubs play the chicago white sox at wrigley field. assume the ticket has no resale value. willie nelson is performing on the same night, and his concert is your next-best alternative activity. tickets to see willie nelson cost $40. on any given day, you would be willing to pay up to $50 to see and hear willie nelson perform. assume there are no other costs of seeing either event. based on this information, at a minimum, how much would you have to value seeing the cubs play the white sox to accept the ticket and go to the game? a. $0b. $40c. $10d. $50

Answers: 1

Answer

You know the right answer?

On January 1, 2019, Kelly Corporation acquired bonds with a face value of $500,000 for $483,841.79,...

Questions