Landmark buys $320,000 of SRW Company's 12%, 6-year bonds payable, at par value on July 1. Interest payments are made semiannually on December31 and June 30. The journal entry Landmark should make to record interest earned and received on December 31 is:Multiple ChoiceDebit Cash $16,000, credit Interest Revenue $16,000.Debit Cash $38,400, credit Interest Revenue $38,400.Debit Cash $19,200, credit Interest Revenue $19,200.Debit Interest Receivable $19,200, credit Interest Revenue $19,200.Debit Interest Revenue $19,200, credit Cash $19,200.

Each journal entry has its dual effect.A asset has debit balance and revenue has credit balance. And…

Landmark buys $320,000 of SRW Company's 12%, 6-year bonds payable, at par value on July 1. Interest payments are made semiannually on December 31 and June 30. The journal entry Landmark should make to record interest earned and received on December 31 is: Multiple Choice О Debit Cash $16,000, credit Interest Revenue $16,000. О Debit Cash $38,400, credit Interest Revenue $38,400. О Debit Cash $19,200, credit Interest Revenue $19,200.

Landmark buys $320,000 of SRW Company's 12%, 6-year bonds payable, at par value on July 1. Interest payments are made semiannually on December 31 and June 30. The journal entry Landmark should make to record interest earned and received on December 31 is: Multiple Choice О Debit Cash $16,000, credit Interest Revenue $16,000. О Debit Cash $38,400, credit Interest Revenue $38,400. О Debit Cash $19,200, credit Interest Revenue $19,200.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On March 1, 20x4, Popular Bank agrees to lend $100.00 to your company through a written contract for a 6-month note payable at 5% interest.a. Register the note to payb. Record interest expense
On the first day of the fiscal year, a company issues a $957,000, 7%, 10-year bond that pays semiannual interest of $33,495 ($957,000 x 7% x 1/2), receiving cash of $1,004,900. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank
Doid Acrobats lent $16,529 to Donaldson, Inc., accepting Donaldson's 2-year, $20,000, zero interest bearing note. The implied interest rate is 10% Prepare Dold's journal entries for the initial transaction. Notes Receivable 20.000 Cash 20,000
On the first day of the fiscal year, a company issues a $970,000, 12%, 10-year bond that pays semiannual interest of $58,200 ($970,000 x 12% x 1/2), receiving cash of $1,018,500. Journalize the entry for the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select - - Select - - Select -
On the first day of the fiscal year, a company issues a $896,000, 7%, 10-year bond that pays semiannual interest of $31,360 ($896,000 x 7% x 1/2), receiving cash of $940,800. Journalize the entry for the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank.
Admire County Bank agrees to lend Bonita Brick Company $609000 on January 1. Bonita Brick Company signs a $609000, 8%, 9- month note. What entry will Bonita Brick Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30? O O Notes Payable Cash Notes Payable Interest Payable Cash Interest Expense Notes Payable Cash Interest Payable Notes Payable Interest Expense Cash 645540 609000 36540 36540 609000 24360 609000 12180 645540 645540 645540 645540
On January 1, Year 1, Mahoney Company borrowed $168,000 cash from Sun Bank by issuing a 5-year, 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, Year 1. The annual payment on the loan equals $42.077, What is the amount of principal repayment included in the payment made on December 31, Year 1? Multiple Choice Ο Ο Ο Ο $13,440 $37.467 $40,725 $28,637
Assume that on July 1, Jerome, Incorporated, paid $100,000 to buy Potter's 8 percent, two-year bonds with a $ bonds pay interest semiannually on December 31 and June 30. Jerome intends to hold the bonds until they ma Complete the necessary December 31 entry to record receipt of interest by selecting the account names from and entering dollar amounts in the debit and credit columns. View transaction list Journal entry worksheet 1 Assume that on July 1, Jerome, Inc., paid $100,000 to buy Potter's 8 percent, two-year bonds with a $100,000 par value. The bonds pay interest semiannually on December 31 and June 30. Jerome intends to hold the bonds until they mature. Complete the necessary December 31 entry to record Note: Enter debits before credits. Date Dec. 31 General Journal Debit Credit
Assume that on July 1, Jerome, Inc., paid $100,000 to buy Potter's 8 percent, two-year bonds with a $100,000 par value. The bonds pay interest semiannually on December 31 and June 30. Jerome intends to hold the bonds until they mature. Complete the necessary December 31 entry to record receipt of interest by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.
On the first day of the fiscal year, a company issues a $676,000, 11%, 10-year bond that pays semiannual interest of $37,180 ($676,000 x 11% x 1/2), receiving cash of $709,800. Journalize the entry for the first interest payment and amortization of premium using the straight-line method.If an amount box does not require an entry, leave it blank
Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $40,000 on January 1. The market interest rate for bonds of similar risk and maturity is 7%. Salt Foods receives interest semiannually on June 30 and December 31.1. & 2. Record the necessary entries regarding the bonds.
Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued $83,000,000 of five-year, 8% bonds at a market (effective) interest rate of 10%, with interest payable semiannually. This information has been collected in the Microsoft Excel Online file. The amount of discount to be amortized for the first semiannual interest payment period, using the interest method. Round your answer to the nearest dollar.