Course at a Glance - 2021 Fal X* My HomeCengageNOWv2 |Online teachirx"iln/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=falseInc.24ConnectWiseReadеВookInterest for bond (held-to-maturity) investmentsOn February 1, Hansen Company purchased $72,000 of 5%, 15-year Knight Company bonds at their face amount plus 1 month's accrued interest. The bonds pay intereston January 1 and July 1. On October 1, Hansen Company sold $26,400 of the Knight Company bonds acquired on February 1, plus 3 months' accrued interest. OnDecember 31, 3 months' interest was accrued for the remaining bonds.Determine the interest earned by Hansen Company on Knight Company bonds for the year.

Interest earned on Bonds sold = Investment value x rate of interest x no. of months/12 =…

Answered: Interest for bond (held-to-maturity)…

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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Falcon Company purchased 10% bonds with a face value of $200,000 at par plus accrued interest on April 1, Year 1. Interest on these bonds is payable June 30 and December 31. Falcon intends to hold the bonds until maturity in Year 3. The entry to record the acquisition of the bonds includes a debit to Investment in Trading Securities for $205,000. debit to Investment in Held-to-Maturity Debt Securities for $205,000. debit to Interest Income for $5,000. debit to Interest Receivable for $5,000.
On January 1 year 1, a company issues 7%, 10 year $300,000 par value bonds that pay annual interest on December 31 of every year. The bonds were issued at 104. Required: Calculate the total borrowing cost (financing cost) for the company, over the life of the bonds.
On January 1, Elias Corporation issued 10% bonds with a face value of $100,000. The bonds are sold for $97,000. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 10 years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is a. $10,000 b. $3,000 C. $833 d. $10,300
Interest for bond (held-to-maturity) investments On February 1, Hansen Company purchased $84,000 of 5%, 10-year Knight Company bonds at their face amount plus 1 month's accrued interest. The bonds pay interest on January 1 and July 1. On October 1, Hansen Company sold $30,000 of the Knight Company bonds acquired on February 1, plus 3 months' accrued interest. On December 31, 3 months' interest was accrued for the remaining bonds. Determine the interest earned by Hansen Company on Knight Company bonds for the year.
Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells football equipment. On July 1, 20Y1, Rodgers issued $77,800,000 of 10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of $87,495,638. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries, if an amount box does not require an entry, leave it blank. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1. fill in the blank 4ad6ca024fc305d_2 fill in the blank 4ad6ca024fc305d_3 fill in the blank 4ad6ca024fc305d_5 fill in the blank 4ad6ca024fc305d_6 fill in the blank 4ad6ca024fc305d_8 fill in the blank 4ad6ca024fc305d_9 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond…
Debt Investment Transactions, Available-for-Sale Valuation Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, Year 1. The following transactions relate to debt investments acquired by Rekya Mart Inc., which has a fiscal year ending on December 31: Year 1 Apr. 1. Purchased $60,000 of Smoke Bay 7%, 10-year bonds at their face amount plus accrued interest of $700. The bonds pay interest semiannually on February 1 and August 1. May 16. Purchased $96,000 of Geotherma Co. 6%, 12-year bonds at their face amount plus accrued interest of $240. The bonds pay interest semiannually on May 1 and November 1. Aug. 1. Received semiannual interest on the Smoke Bay bonds. Sept. 1. Sold $24,000 of Smoke Bay bonds at 104 plus accrued interest of $140. Nov. 1. Received semiannual interest on the Geotherma Co. bonds. Dec. 31 Accrued $840 interest on Smoke Bay bonds. Dec. 31 Accrued $480 interest on Geotherma Co. bonds. Year 2 Feb. 1. Received…
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Vikram Bhai
Interest for bond (held-to-maturity) investments On February 1, Hansen Company purchased $108,000 of 5%, 15-year Knight Company bonds at their face amount plus 1 month's accrued interest. The bonds pay interest on January 1 and July 1. On October 1, Hansen Company sold $38,400 of the Knight Company bonds acquired on February 1, plus 3 months' accrued interest. On December 31, 3 months' interest was accrued for the remaining bonds. Determine the interest earned by Hansen Company on Knight Company bonds for the year. 2$

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