Bond (Held-to-Maturity)Investment Journalize the entries to record the following selected bond investment transactions for Marr Products: If an amount box does not require an entry, leave it blank. a. Purchased for cash $180,000 of Hotline Inc. 5% bonds at 100 plus accrued interest of $1,500. Investments-Hotline Inc. Bonds fill in the blank 58d32df6c011fb9_2 fill in the blank 58d32df6c011fb9_3 Interest Receivable fill in the blank 58d32df6c011fb9_5 fill in the blank 58d32df6c011fb9_6 Cash fill in the blank 58d32df6c011fb9_8 fill in the blank 58d32df6c011fb9_9 Feedback a. Record the investment at face value. Interest that is receivable on the date of purchase must be recorded as well. b. Received first semiannual interest payment. Cash fill in the blank a853e5026064fa2_2 fill in the blank a853e5026064fa2_3 Interest Receivable fill in the blank a853e5026064fa2_5 fill in the blank a853e5026064fa2_6 Interest Revenue fill in the blank a853e5026064fa2_8 fill in the blank a853e5026064fa2_9 Feedback b. Record the interest revenue as earned. Bond principal x interest rate x time = Total interest. Remember to consider any receivable on the books. c. Sold $90,000 of the bonds at 102 plus accrued interest of $750. Cash fill in the blank c8f2b0fa4f98fa5_2 fill in the blank c8f2b0fa4f98fa5_3 Interest Revenue fill in the blank c8f2b0fa4f98fa5_5 fill in the blank c8f2b0fa4f98fa5_6 Gain on Sale of Investments fill in the blank c8f2b0fa4f98fa5_8 fill in the blank c8f2b0fa4f98fa5_9 Investments-Hotline Inc. Bonds fill in the blank c8f2b0fa4f98fa5_11 fill in the blank c8f2b0fa4f98fa5_12 Feedback c. Calculate the proceeds: First compute the % x face amount of bonds sold. Next, adjust the amount for any accrued interest and commission. To complete the entry, determine any gain or loss on the transaction. d. Received face value of remaining bonds at their maturity. Cash fill in the blank 3b6ba702fff4fc0_2 fill in the blank 3b6ba702fff4fc0_3 Investments-Hotline Inc. Bonds fill in the blank 3b6ba702fff4fc0_5 fill in the blank 3b6ba702fff4fc0_6

Bond (Held-to-Maturity)Investment Journalize the entries to record the following selected bond investment transactions for Marr Products: If an amount box does not require an entry, leave it blank. a. Purchased for cash $180,000 of Hotline Inc. 5% bonds at 100 plus accrued interest of $1,500. Investments-Hotline Inc. Bonds fill in the blank 58d32df6c011fb9_2 fill in the blank 58d32df6c011fb9_3 Interest Receivable fill in the blank 58d32df6c011fb9_5 fill in the blank 58d32df6c011fb9_6 Cash fill in the blank 58d32df6c011fb9_8 fill in the blank 58d32df6c011fb9_9 Feedback a. Record the investment at face value. Interest that is receivable on the date of purchase must be recorded as well. b. Received first semiannual interest payment. Cash fill in the blank a853e5026064fa2_2 fill in the blank a853e5026064fa2_3 Interest Receivable fill in the blank a853e5026064fa2_5 fill in the blank a853e5026064fa2_6 Interest Revenue fill in the blank a853e5026064fa2_8 fill in the blank a853e5026064fa2_9 Feedback b. Record the interest revenue as earned. Bond principal x interest rate x time = Total interest. Remember to consider any receivable on the books. c. Sold $90,000 of the bonds at 102 plus accrued interest of $750. Cash fill in the blank c8f2b0fa4f98fa5_2 fill in the blank c8f2b0fa4f98fa5_3 Interest Revenue fill in the blank c8f2b0fa4f98fa5_5 fill in the blank c8f2b0fa4f98fa5_6 Gain on Sale of Investments fill in the blank c8f2b0fa4f98fa5_8 fill in the blank c8f2b0fa4f98fa5_9 Investments-Hotline Inc. Bonds fill in the blank c8f2b0fa4f98fa5_11 fill in the blank c8f2b0fa4f98fa5_12 Feedback c. Calculate the proceeds: First compute the % x face amount of bonds sold. Next, adjust the amount for any accrued interest and commission. To complete the entry, determine any gain or loss on the transaction. d. Received face value of remaining bonds at their maturity. Cash fill in the blank 3b6ba702fff4fc0_2 fill in the blank 3b6ba702fff4fc0_3 Investments-Hotline Inc. Bonds fill in the blank 3b6ba702fff4fc0_5 fill in the blank 3b6ba702fff4fc0_6

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bond (Held-to-Maturity)Investment

Journalize the entries to record the following selected bond investment transactions for Marr Products:

If an amount box does not require an entry, leave it blank.

a. Purchased for cash $180,000 of Hotline Inc. 5% bonds at 100 plus accrued interest of $1,500.

Investments-Hotline Inc. Bonds	fill in the blank 58d32df6c011fb9_2	fill in the blank 58d32df6c011fb9_3
Interest Receivable	fill in the blank 58d32df6c011fb9_5	fill in the blank 58d32df6c011fb9_6
Cash	fill in the blank 58d32df6c011fb9_8	fill in the blank 58d32df6c011fb9_9

Feedback

a. Record the investment at face value. Interest that is receivable on the date of purchase must be recorded as well.

b. Received first semiannual interest payment.

Cash	fill in the blank a853e5026064fa2_2	fill in the blank a853e5026064fa2_3
Interest Receivable	fill in the blank a853e5026064fa2_5	fill in the blank a853e5026064fa2_6
Interest Revenue	fill in the blank a853e5026064fa2_8	fill in the blank a853e5026064fa2_9

Feedback

b. Record the interest revenue as earned. Bond principal x interest rate x time = Total interest. Remember to consider any receivable on the books.

c. Sold $90,000 of the bonds at 102 plus accrued interest of $750.

Cash	fill in the blank c8f2b0fa4f98fa5_2	fill in the blank c8f2b0fa4f98fa5_3
Interest Revenue	fill in the blank c8f2b0fa4f98fa5_5	fill in the blank c8f2b0fa4f98fa5_6
Gain on Sale of Investments	fill in the blank c8f2b0fa4f98fa5_8	fill in the blank c8f2b0fa4f98fa5_9
Investments-Hotline Inc. Bonds	fill in the blank c8f2b0fa4f98fa5_11	fill in the blank c8f2b0fa4f98fa5_12

Feedback

c. Calculate the proceeds: First compute the % x face amount of bonds sold. Next, adjust the amount for any accrued interest and commission. To complete the entry, determine any gain or loss on the transaction.

d. Received face value of remaining bonds at their maturity.

	Cash	fill in the blank 3b6ba702fff4fc0_2	fill in the blank 3b6ba702fff4fc0_3
	Investments-Hotline Inc. Bonds	fill in the blank 3b6ba702fff4fc0_5	fill in the blank 3b6ba702fff4fc0_6

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