Bond investment : Bond investments are debt securities which pay fixed interest revenue to the investor. 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 bond investment transactions in the books of Company P.

Question

Assume that markup is based on cost. Find the dollar markup and percent markup on cost for the following. 1. Cost: $23.75 2. Selling Price: $29.50. Accounting

Answer 1

Question

Chapter 13, Problem 1EX

a)

To determine

Bond investment:

Bond investments are debt securities which pay fixed interest revenue to the investor.

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 bond investment transactions in the books of Company P.

(b)

To determine

Prepare journal entry to record the semiannual interest revenue received.

(c)

To determine

Prepare journal entry for $50,000 bonds of Company M sold at 96%.

(d)

To determine

Prepare journal entry for accrued interest.

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Assume that markup is based on cost. Find the dollar markup and percent markup on cost for the following. 1. Cost: $23.75 2. Selling Price: $29.50. Accounting

Subject. General Account

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Answer 2

Question

Chapter 13, Problem 1EX

a)

To determine

Bond investment:

Bond investments are debt securities which pay fixed interest revenue to the investor.

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 bond investment transactions in the books of Company P.

(b)

To determine

Prepare journal entry to record the semiannual interest revenue received.

(c)

To determine

Prepare journal entry for $50,000 bonds of Company M sold at 96%.

(d)

To determine

Prepare journal entry for accrued interest.

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Answer 3

Question

Chapter 13, Problem 1EX

a)

To determine

Bond investment:

Bond investments are debt securities which pay fixed interest revenue to the investor.

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 bond investment transactions in the books of Company P.

(b)

To determine

Prepare journal entry to record the semiannual interest revenue received.

(c)

To determine

Prepare journal entry for $50,000 bonds of Company M sold at 96%.

(d)

To determine

Prepare journal entry for accrued interest.

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Answer 4

Question

Chapter 13, Problem 1EX

a)

To determine

Bond investment:

Bond investments are debt securities which pay fixed interest revenue to the investor.

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 bond investment transactions in the books of Company P.

(b)

To determine

Prepare journal entry to record the semiannual interest revenue received.

(c)

To determine

Prepare journal entry for $50,000 bonds of Company M sold at 96%.

(d)

To determine

Prepare journal entry for accrued interest.

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Answer 5

Chapter 13, Problem 1EX

a)

To determine

Bond investment:

Bond investments are debt securities which pay fixed interest revenue to the investor.

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 bond investment transactions in the books of Company P.

(b)

To determine

Prepare journal entry to record the semiannual interest revenue received.

(c)

To determine

Prepare journal entry for $50,000 bonds of Company M sold at 96%.

(d)

To determine

Prepare journal entry for accrued interest.

Answer 6

Chapter 13, Problem 1EX

a)

To determine

Bond investment:

Bond investments are debt securities which pay fixed interest revenue to the investor.

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 bond investment transactions in the books of Company P.

Answer 7

Chapter 13, Problem 1EX

a)

To determine

Bond investment:

Bond investments are debt securities which pay fixed interest revenue to the investor.

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 bond investment transactions in the books of Company P.

Answer 8

(b)

To determine

Prepare journal entry to record the semiannual interest revenue received.

Answer 9

(b)

To determine

Prepare journal entry to record the semiannual interest revenue received.

Answer 10

(c)

To determine

Prepare journal entry for $50,000 bonds of Company M sold at 96%.

Answer 11

(c)

To determine

Prepare journal entry for $50,000 bonds of Company M sold at 96%.

Answer 12

(d)

To determine

Prepare journal entry for accrued interest.

Answer 13

(d)

To determine

Prepare journal entry for accrued interest.

Answer 14

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Answer 25

Ch. 13 - Prob. 1DQ Ch. 13 - What causes a gain or loss on the sale of a bond...Ch. 13 - Prob. 3DQ Ch. 13 - Prob. 4DQ Ch. 13 - Prob. 5DQ Ch. 13 - Prob. 6DQ Ch. 13 - Prob. 7DQ Ch. 13 - Prob. 8DQ Ch. 13 - What are the factors contributing to the trend...Ch. 13 - Prob. 10DQ

Solution Summary: The author explains that bond investments are debt securities which pay fixed interest revenue to the investor. Journal entry is a set of economic events which can be measured in monetary terms.

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Prepare journal entry to record the semiannual interest revenue received.

Prepare journal entry for $50,000 bonds of Company M sold at 96%.

Prepare journal entry for accrued interest.

Chapter 13 Solutions