Crane Co. purchased 90, 6% Blossom Company bonds for $90000 cash. Interest is payable annually on January 1. If 45 of the securities are sold on January 1 for $47100, the entry would include a credit to Gain on Sale of Debt Investments for

Crane Co. purchased 90, 6% Blossom Company bonds for $90000 cash. Interest is payable annually on January 1. If 45 of the securities are sold on January 1 for $47100, the entry would include a credit to Gain on Sale of Debt Investments for

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

Crane Co. purchased 90, 6% Blossom Company bonds for $90000 cash. Interest is payable annually on January 1. If 45 of the
securities are sold on January 1 for $47100, the entry would include a credit to Gain on Sale of Debt Investments for
O $2505.
O $2100.
$2555.
O $2355.

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