Held-to-maturity security : The debt securities which are held by the investor with an intent to hold the investment till its maturity, are referred to as held-to-maturity securities. Journal entry : Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically. Debit and credit rules: Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts. Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts. To journalize : The purchase $240,000,000 of 6% bonds in the books of Corporation T

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Answer 1

Question

Chapter 12, Problem 12.1E

(1)

To determine

Held-to-maturity security: The debt securities which are held by the investor with an intent to hold the investment till its maturity, are referred to as held-to-maturity securities.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The purchase $240,000,000 of 6% bonds in the books of Corporation T

(2)

To determine

To journalize: The receipt of semiannual interest on December 31, 2016 in the books of Corporation T

(3)

To determine

To indicate: The amount of investment value as on December 31, 2016 in the books of Corporation T

(4)

To determine

To journalize: The sale of bonds on January 2, 2017 in the books of Corporation T

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Students have asked these similar questions

Sauerbraten Corp. reported 2007 sales ($ in millions) of $2,157 and a cost of goods sold of $1,827. The company uses the LIFO method for inventory valuation. It discloses that if the FIFO inventory valuation method had been used, inventories would have been $63.3 million and $56.8 million higher in 2007 and 2006, respectively. If Sauerbraten used the FIFO method exclusively, it would have reported 2007 gross profit closest to? a. $324. b. $330. c. $337.

Vanguard Enterprises prepared its financial statements for 2020 based on the information below. The company had cash of $2,300, inventory of $19,400, and accounts receivables of $8,100. The company's net fixed assets were $55,000, and other assets were $4,500. It had accounts payable of $13,700, notes payable of $5,500, common stock of $30,000, and retained earnings of $17,200. How much long-term debt did the firm have?

General accounting question

Answer 2

Question

Chapter 12, Problem 12.1E

(1)

To determine

Held-to-maturity security: The debt securities which are held by the investor with an intent to hold the investment till its maturity, are referred to as held-to-maturity securities.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The purchase $240,000,000 of 6% bonds in the books of Corporation T

(2)

To determine

To journalize: The receipt of semiannual interest on December 31, 2016 in the books of Corporation T

(3)

To determine

To indicate: The amount of investment value as on December 31, 2016 in the books of Corporation T

(4)

To determine

To journalize: The sale of bonds on January 2, 2017 in the books of Corporation T

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Answer 3

Question

Chapter 12, Problem 12.1E

(1)

To determine

Held-to-maturity security: The debt securities which are held by the investor with an intent to hold the investment till its maturity, are referred to as held-to-maturity securities.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The purchase $240,000,000 of 6% bonds in the books of Corporation T

(2)

To determine

To journalize: The receipt of semiannual interest on December 31, 2016 in the books of Corporation T

(3)

To determine

To indicate: The amount of investment value as on December 31, 2016 in the books of Corporation T

(4)

To determine

To journalize: The sale of bonds on January 2, 2017 in the books of Corporation T

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Answer 4

Question

Chapter 12, Problem 12.1E

(1)

To determine

Held-to-maturity security: The debt securities which are held by the investor with an intent to hold the investment till its maturity, are referred to as held-to-maturity securities.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The purchase $240,000,000 of 6% bonds in the books of Corporation T

(2)

To determine

To journalize: The receipt of semiannual interest on December 31, 2016 in the books of Corporation T

(3)

To determine

To indicate: The amount of investment value as on December 31, 2016 in the books of Corporation T

(4)

To determine

To journalize: The sale of bonds on January 2, 2017 in the books of Corporation T

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Answer 5

Chapter 12, Problem 12.1E

(1)

To determine

Held-to-maturity security: The debt securities which are held by the investor with an intent to hold the investment till its maturity, are referred to as held-to-maturity securities.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The purchase $240,000,000 of 6% bonds in the books of Corporation T

(2)

To determine

To journalize: The receipt of semiannual interest on December 31, 2016 in the books of Corporation T

(3)

To determine

To indicate: The amount of investment value as on December 31, 2016 in the books of Corporation T

(4)

To determine

To journalize: The sale of bonds on January 2, 2017 in the books of Corporation T

Answer 6

Chapter 12, Problem 12.1E

(1)

To determine

Held-to-maturity security: The debt securities which are held by the investor with an intent to hold the investment till its maturity, are referred to as held-to-maturity securities.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The purchase $240,000,000 of 6% bonds in the books of Corporation T

Answer 7

Chapter 12, Problem 12.1E

(1)

To determine

Held-to-maturity security: The debt securities which are held by the investor with an intent to hold the investment till its maturity, are referred to as held-to-maturity securities.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The purchase $240,000,000 of 6% bonds in the books of Corporation T

Answer 8

(2)

To determine

To journalize: The receipt of semiannual interest on December 31, 2016 in the books of Corporation T

Answer 9

(2)

To determine

To journalize: The receipt of semiannual interest on December 31, 2016 in the books of Corporation T

Answer 10

(3)

To determine

To indicate: The amount of investment value as on December 31, 2016 in the books of Corporation T

Answer 11

(3)

To determine

To indicate: The amount of investment value as on December 31, 2016 in the books of Corporation T

Answer 12

(4)

To determine

To journalize: The sale of bonds on January 2, 2017 in the books of Corporation T

Answer 13

(4)

To determine

To journalize: The sale of bonds on January 2, 2017 in the books of Corporation T

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 12 - Prob. 12.1Q Ch. 12 - When market rates of interest rise after a...Ch. 12 - Does GAAP distinguish between fair values that are...Ch. 12 - When a debt investment is acquired to be held for...Ch. 12 - Prob. 12.5Q Ch. 12 - What is comprehensive income? Its composition...Ch. 12 - Why are holding gains and losses treated...Ch. 12 - Prob. 12.8Q Ch. 12 - Prob. 12.9Q Ch. 12 - Prob. 12.10Q

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To journalize: The receipt of semiannual interest on December 31, 2016 in the books of Corporation T

To indicate: The amount of investment value as on December 31, 2016 in the books of Corporation T

To journalize: The sale of bonds on January 2, 2017 in the books of Corporation T

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Chapter 12 Solutions