On January 1, 2015, LK Co purchased 5000, 5year, 9% Bonds from HM Co. at 96. Each bond costs P1000. Commission paid is P22,000. On December 31, 2015, the bonds are quoted @98, December 31, 2016, @ 102, December 31, 2017 @99 , December 31 2018 @ 101. ¼ of the bonds are sold on December 31, 2016 and the remaining on December 2018. Prepare all journal entries related to this investment assuming LK classified it as Trading Securities. Prepare all journal entries related to this investment assuming LK classified it as Available for sale Securities. How much is recognized in equity related on this investment each year assuming these are trading securities?

Q: A) Journalize the entries for the bonds on       1. Jan 1, 2011      2. July 1, 2011      3. Dec 31,…

A: Bonds payable is a liability account, and discount on bonds payable is a contra account of bonds…

Q: Ivanhoe Company issues $265,000, 20-year, 10% bonds at 103. What is the journal entry to record the…

A: Par value of bonds = $265,000   Issue price of bonds = 265,000 x 103% Issue price of bonds =…

Q: Yanik Corporation issues 5,000, 10-year, 8%, $1,000 bonds dated January 1, 2017, at 97. The journal…

A: INTRODUCTION: Bonds are units of corporate debt issued by firms and securitized as tradeable assets.…

Q: On January 1, 2017, Carla Vista Company redeemed $470,000 of bonds at 103. At the time of…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On January 1, 2018, Davie Services issued $20,000 of 8% bonds that mature in five years. They were…

A: Premium on issue of bonds = Isue value - face value of bonds = $20,750 - $20,000 = $750

Q: Rosewell Corporation sold $4,000,000, 7%, 10-year bonds on January 1, 2015. The bonds were dated…

A: The total cost of borrowings indicates the amount borrowed by the company for raising funds in…

Q: Blue Spruce Corp. issues 6400, 10-year, 8%, $1000 bonds dated January 1, 2017, at 101. The journal…

A: Answer is option a)  credit to Bonds Payable for $6400000.

Q: Ivanhoe Company issues $3,000,000, 10-year, 8% bonds at 93, with interest payable each January 1.…

A: The bonds are the financial instruments for the business used to raise money from the market. The…

Q: On January 1, 2016, Knorr Corporation issued $800,000 of 6%, 5-year bonds dated January 1, 2016. The…

A: A bond is a fixed pay instrument issued to represent to an advance made by a financial specialist to…

Q: On January 1, 2016, Knorr Corporation issued $1,100,000 of 9%, 5-year bonds dated January 1, 2016.…

A: Interest on Bonds = $1,000,000 x 9%= $90,000Present Value of Bonds = Interest on Bonds x PVAF(n=5,…

Q: Superior drive ins Ltd borrowed money by issuing $5500,000 of 6% bonds payable at 93.5 on July…

A: solution : given : face value of bond       =$5500,000 coupon rate                   =6% issue price…

Q: Monica Corporation has $4,000,000 of 8 percent, 25-year bonds dated May 1, 2016, with interest…

A: 1) Journal entry Date account and explanation Debit credit May 1,2011 Cash (4000000*103.5/100)…

Q: On 1/1/2005, Al-Rasheed Company bought 100 bonds at a price of 90 d. The bond is in deed, at an…

A: Bond Payable In a simple term bond which means that the raising fund which are needed by the…

Q: Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Daan…

A: Semiannual Interest = $4,700,000 x 8% x 6/12 = $188,000   Interest is paid semiannually for 8 years.…

Q: Rumpi Company purchased $50,000 of 7 percent bonds of Evermistress Corporation on January 1, 2015,…

A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…

Q: *P15-6C Proctor Company sold $6,000,000, 9%, 20-year bonds on January 1, 2016. The bonds were dated…

A: Since you have posted multiple questions, we will provide the solutiononly to the first question as…

Q: Prepare entry for bonds issued. BE10.8 (LO 3), AP Bridle Inc. issues $300,000, 10-year, 8% bonds at…

A: Introduction: When bonds are sold at a price lower than its face value then such bonds are issued at…

Q: The Colson Company issued S300.000 bonds at 98 on January 1, 2017. The bonds are due January 1,…

A: Given information is: Face value of bonds = $300,000 Issue price = 98 per bond

Q: Want Answer

A: Now, let's take a step-by-step look at each section of these journal entries for bond transactions,…

Q: On January 1, 2014, Jack Company issues the $4,110,000, 8%, 10-year bonds described above for cash…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: On January 1, 2018, Denver Services issued $20,000 of 8% bonds that mature in five years. The bonds…

A: Given, Bonds Face value = $20,000 Bonds issue price = $19,000

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.