Required information[The following information applies to the questions displayed below.]On January 1, 2019, Rain Technology purchased at par $90,000, 5%, bonds of Lightyear Services Company. The bondspay interest quarterly on March 31, June 30, September 30, and December 31. Rain Technology's year ends on December31. The following information applies to the fair value of Lightyear Services' bonds:BondPrice12/31/2019 $88,00012/31/202012/31/202197,00092,000Rain Technology sold the bonds on July 14, 2022, for $95,000.3. Assuming that Rain purchased the bonds as available-for-sale securities, prepare journal entries at the end of each year and on thedate of sale. Ignore interest. (If no entry is required for a transaction/event, select "No journal entry required" in the first accountfield.) O Answer is not complete.NoDateGeneral JournalDebitCreditDecember 31, 201 Unrealized loss2,0001Cash2,000December 31, 202 Unrealized loss2,0002,000December 31, 202 Unrealized loss2,0002,0004July 14, 20227,000Unrealized loss7,000July 14, 2022Cash6July 14, 2022CashLO

A journal entry is a record of a commercial transaction in an organization's accounting system.…

Required information [The following information applies to the questions displayed below.] On January 1, 2019, Rain Technology purchased at par $90,000, 5%, bonds of Lighty pay interest quarterly on March 31, June 30, September 30, and December 31. Rain 31. The following information applies to the fair value of Lightyear Services' bonds: Bond Price 12/31/2019 $88,000 12/31/2020 97,000 12/31/2021 92,000 Rain Technology sold the bonds on July 14, 2022, for $95,000. uming that Rain purchased the bonds as available-for-sale securities, prepare journ: of sale. Ignore interest. (If no entry is required for a transaction/event, select "No jo

Required information [The following information applies to the questions displayed below.] On January 1, 2019, Rain Technology purchased at par $90,000, 5%, bonds of Lighty pay interest quarterly on March 31, June 30, September 30, and December 31. Rain 31. The following information applies to the fair value of Lightyear Services' bonds: Bond Price 12/31/2019 $88,000 12/31/2020 97,000 12/31/2021 92,000 Rain Technology sold the bonds on July 14, 2022, for $95,000. uming that Rain purchased the bonds as available-for-sale securities, prepare journ: of sale. Ignore interest. (If no entry is required for a transaction/event, select "No jo

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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On August 1, 2021, Crane Company acquired 1310, $1000, 9% bonds at 97 plus accrued interest. The bonds were dated May 1, 2018, and mature on April 30, 2027, with interest paid each October 31 and April 30. The bonds will be added to Crane’s available-for-sale portfolio. The preferred entry to record the purchase of the bonds on August 1, 2021 isa. Debt Investments 1310000 Interest Revenue 29475 Discount on Debt Investments 39300 Cash 1300175 b. Debt Investments 1300175 Cash 1300175 c. Debt Investments 1270700 Interest Receivable 29475 Cash 1300175 d. Debt Investments 1270700 Interest Revenue 29475 Cash 1300175
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BMT Company issued P5,000,000, 12%, 20-year bonds at 102 plus accrued interest on February 1, 2021. The bonds are dated January 1, 2021 and pay interest semi-annually every June 30 and December 31, Transaction costs totaled P50,000. How much accrued interest on the bonds shall BMT Company collect from the investor on February 1, 2021?
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1
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