Morgan Corporation has excess cash to invest and pays $100,000 to buy 7%, five-year bonds of Roberts Corporation, at face value, on June 30, 2024. The bonds pay interest on June 30 and December 31. Morgan intends to and has the ability to hold the bonds to maturity. The bonds are disposed of, at face value, on June 30 two years later. The journal entry for June 30, 2024 is: O Cash Held-to-Maturity Debt Investments O Cash 0 0 Equity Investments O Held-to-Maturity Debt Investments Cash O Equity Investments Cash 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
Morgan Corporation has excess cash to invest and pays $100,000 to buy 7%, five-year bonds of Roberts Corporation, at face value, on June 30, 2024. The bonds pay interest on June 30 and December 31. Morgan intends to and has the ability to hold the bonds to maturity. The bonds are disposed of, at face value, on June 30 two years later. The journal entry for June 30, 2024 is: O Cash Held-to-Maturity Debt Investments O Cash 0 0 Equity Investments O Held-to-Maturity Debt Investments Cash O Equity Investments Cash 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Morgan Corporation has excess cash to invest and pays $100,000 to buy 7%, five-year bonds of Roberts Corporation, at face value, on June 30, 2024. The bonds
pay interest on June 30 and December 31. Morgan intends to and has the ability to hold the bonds to maturity. The bonds are disposed of, at face value, on June
30 two years later. The journal entry for June 30, 2024 is:
Cash
Held-to-Maturity Debt Investments
Cash
Equity Investments
Held-to-Maturity Debt Investments
Cash
Equity Investments
Cash
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
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