Required information [The following information applies to the questions displayed below.) On January 1, 2024, Rain Technology purchased at par $85,000, 7 percent, bonds of Lightyear Services Company. The bonds pay interest quarterly on March 31, June 30, September 30, and December 31. Rain Technology's year ends on December 31. The following information applies to the fair value of Lightyear Services' bonds: Bond Price. $83,000 92,000 87,000 12/31/2024 12/31/2025 12/31/2026 Rain Technology sold the bonds on July 14, 2027, for $90,000. 3. Assuming that Rain purchased the bonds as available-for-sale securities, prepare journal entries at the end of each year and on the date of sale. Ignore interest. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Required information [The following information applies to the questions displayed below.) On January 1, 2024, Rain Technology purchased at par $85,000, 7 percent, bonds of Lightyear Services Company. The bonds pay interest quarterly on March 31, June 30, September 30, and December 31. Rain Technology's year ends on December 31. The following information applies to the fair value of Lightyear Services' bonds: Bond Price. $83,000 92,000 87,000 12/31/2024 12/31/2025 12/31/2026 Rain Technology sold the bonds on July 14, 2027, for $90,000. 3. Assuming that Rain purchased the bonds as available-for-sale securities, prepare journal entries at the end of each year and on the date of sale. Ignore interest. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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DO NOT ANSWER IN IMAGE FORMAT
![d
Required information
[The following information applies to the questions displayed below.]
On January 1, 2024, Rain Technology purchased at par $85,000, 7 percent, bonds of Lightyear Services Company. The
bonds pay interest quarterly on March 31, June 30, September 30, and December 31. Rain Technology's year ends on
December 31. The following information applies to the fair value of Lightyear Services' bonds:
Bond Price
$83,000
92,000
87,000
Rain Technology sold the bonds on July 14, 2027, for $90,000.
12/31/2024
12/31/2025
12/31/2026
3. Assuming that Rain purchased the bonds as available-for-sale securities, prepare journal entries at the end of each year and on the
date of sale. Ignore interest.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feba0994c-640e-4b02-95de-f448cb9caf24%2F18cab598-9f0e-4e86-a667-eed087e7bd4f%2F925xzbl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:d
Required information
[The following information applies to the questions displayed below.]
On January 1, 2024, Rain Technology purchased at par $85,000, 7 percent, bonds of Lightyear Services Company. The
bonds pay interest quarterly on March 31, June 30, September 30, and December 31. Rain Technology's year ends on
December 31. The following information applies to the fair value of Lightyear Services' bonds:
Bond Price
$83,000
92,000
87,000
Rain Technology sold the bonds on July 14, 2027, for $90,000.
12/31/2024
12/31/2025
12/31/2026
3. Assuming that Rain purchased the bonds as available-for-sale securities, prepare journal entries at the end of each year and on the
date of sale. Ignore interest.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
![d
Required information
[The following information applies to the questions displayed below.]
On January 1, 2024, Rain Technology purchased at par $85,000, 7 percent, bonds of Lightyear Services Company. The
bonds pay interest quarterly on March 31, June 30, September 30, and December 31. Rain Technology's year ends on
December 31. The following information applies to the fair value of Lightyear Services' bonds:
Bond Price
$83,000
92,000
87,000
Rain Technology sold the bonds on July 14, 2027, for $90,000.
12/31/2024
12/31/2025
12/31/2026
3. Assuming that Rain purchased the bonds as available-for-sale securities, prepare journal entries at the end of each year and on the
date of sale. Ignore interest.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feba0994c-640e-4b02-95de-f448cb9caf24%2F18cab598-9f0e-4e86-a667-eed087e7bd4f%2Fwwza1r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:d
Required information
[The following information applies to the questions displayed below.]
On January 1, 2024, Rain Technology purchased at par $85,000, 7 percent, bonds of Lightyear Services Company. The
bonds pay interest quarterly on March 31, June 30, September 30, and December 31. Rain Technology's year ends on
December 31. The following information applies to the fair value of Lightyear Services' bonds:
Bond Price
$83,000
92,000
87,000
Rain Technology sold the bonds on July 14, 2027, for $90,000.
12/31/2024
12/31/2025
12/31/2026
3. Assuming that Rain purchased the bonds as available-for-sale securities, prepare journal entries at the end of each year and on the
date of sale. Ignore interest.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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