Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 10, Problem 10.17AP
A Accounting for bond investments
Suppose Jenner and Sons purchases $700,000 of 4.5% annual bonds of McPhee Corporation at face value on January 1, 2016. These bonds pay interest on June 30 and December 31 each year. They mature on December 31, 2020. Jenner intends to hold the McPhee bond investment until maturity.
Requirements
1. Journalize Jenner and Sons's transactions related to the bonds for 2016.
2.
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Suppose Donahue Brothers purchases $750,000 of 6.5% annual bonds of McPhee Corporation at face value on
January 1, 2024. These bonds pay interest on June 30 and December 31 each year. They mature on December 31,
2033 Donahue intends to hold the McPhee bond investment until maturity
Read the requirements
Requirement 1. Journalize Donahue Brothers' transactions related to the bonds for 2024 (Record debits first, then
credits Select the explanation on the last line of the journal entry table)
Begin by journalizing Donahue Brothers' investment on January 1, 2024
Date
Accounts and Explanation
2024
Jan 1
GETD
Next, journalize the receipt of cash interest on June 30, 2024
Accounts and Explanation
Date
2024
Jun 30
Journalize the receipt of cash interest on December 31, 2024
Accounts and Explanation
Date
2024
Dec 31
Debit
Accounts and Explanation
Debit
Debit
Credit
Debit
Credit
Requirement 2. Journalize the entry required on the McPhee bonds maturity date (Assume the last interest paymen
has…
Accounting for debt investments
League Up & Co. owns vast amounts of corporate bonds. Suppose League Up buys $900,000 of CocoCorp bonds at face value on January 2, 2018. The CocoCorp bonds pay interest at the annual rate of 8% on June 30 and December 31 and mature on December 31, 2022. League Up intends to hold the investment until maturity.
Requirements
How would the bond investment be classified on League up’s December 31, 2018, balance sheet?
Journalize the following on League Up’s books:
a. Receipt of final interest payment, on December 31, 2022.
b. Disposition of the investment at maturity on December 31, 2022.
Please help find issue price of bonds
Requirements-
Using PV function in excel calculate issue price of bonds
Prepare effective interest amortization table for bonds through the first three interest payments
Record ranking corporations issuance of bonds on March 31 2018. And payment of first semiannual interest amount and amortization of bond and discount on September 30,209. Explanations are not required.
Chapter 10 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Ch. 10 - Prob. 1QCCh. 10 - Which of the following investments is most likely...Ch. 10 - If Intervale Railway invests 100,000 in 5% bonds...Ch. 10 - Prob. 4QCCh. 10 - Prob. 5QCCh. 10 - Prob. 6QCCh. 10 - Prob. 7QCCh. 10 - Harvard Co. purchased a trading investment on...Ch. 10 - Prob. 9QCCh. 10 - Prob. 10QC
Ch. 10 - What is a debt security?Ch. 10 - Prob. 2RQCh. 10 - Prob. 3RQCh. 10 - Briefly describe the five specific types of debt...Ch. 10 - How is the purchase of a held-to-maturity debt...Ch. 10 - Prob. 6RQCh. 10 - What method is used for investments in equity...Ch. 10 - What method is used for investments in equity...Ch. 10 - What adjustment must be made at the end of the...Ch. 10 - Where on the financial statements is an unrealized...Ch. 10 - Prob. 11RQCh. 10 - Prob. 12RQCh. 10 - Prob. 13RQCh. 10 - What does the rate of return on total assets...Ch. 10 - Identifying why companies invest and classifying...Ch. 10 - Prob. 10.2SECh. 10 - Prob. 10.3SECh. 10 - Accounting for equity method On January 1, 2016,...Ch. 10 - Accounting for trading investments On February 1,...Ch. 10 - Prob. 10.6SECh. 10 - Computing rate of return on total assets Kabra's...Ch. 10 - Prob. 10.8ECh. 10 - Prob. 10.9ECh. 10 - Accounting for bond investments Otter Creek Co....Ch. 10 - Accounting for stock investments Dollar Bill...Ch. 10 - Prob. 10.12ECh. 10 - Prob. 10.13ECh. 10 - Accounting for stock investments Suppose that on...Ch. 10 - Prob. 10.15ECh. 10 - Prob. 10.16ECh. 10 - A Accounting for bond investments Suppose Jenner...Ch. 10 - Prob. 10.18APCh. 10 - Accounting for stock investments The beginning...Ch. 10 - Accounting for bond investments Suppose Ritter...Ch. 10 - Classifying and accounting for stock investments...Ch. 10 - Accounting for stock investments The beginning...Ch. 10 - Prob. 10.23CPCh. 10 - Prob. 10.1CTEICh. 10 - Wild Adventure conducts tours of wildlife reserves...Ch. 10 - Prob. 10.1CTFSCCh. 10 - Prob. 10.1CTTPCh. 10 - In 150 words or fewer, explain the difference...
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