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 Corporation B.

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Answer 1

Question

Chapter 13, Problem 3EX

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 Corporation B.

(b)

To determine

To Prepare: journal entry to record the interest revenue received.

(c)

To determine

To Prepare: journal entry for $30,000 bonds sold at 99%, with an accrued interest of $150 and a brokerage of $100.

(d)

To determine

To Prepare: journal entry for accrued interest.

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Chapter 18 Homework i Saved 15 Exercise 18-14 (Algo) Contribution margin income statement LO C2 1 points eBook Hint Sunn Company manufactures a single product that sells for $190 per unit and whose variable costs are $133 per unit. The company's annual fixed costs are $628,000. The sales manager predicts that next year's annual sales of the company's product will be 39,800 units at a price of $198 per unit. Variable costs are predicted to increase to $138 per unit, but fixed costs will remain at $628,000. What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for the next year. SUNN COMPANY Contribution Margin Income Statement Units $ per unit 39,800 $ 198 Ask Sales Variable costs 39,800 Print Contribution margin 39,800 Fixed costs Income References Mc Graw Hill $ 7,880,400 138 5,492,400 2,388,000 628,000 $ 1,760,000 Help Save & Exit Submit Check my work

Answer 2

Question

Chapter 13, Problem 3EX

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 Corporation B.

(b)

To determine

To Prepare: journal entry to record the interest revenue received.

(c)

To determine

To Prepare: journal entry for $30,000 bonds sold at 99%, with an accrued interest of $150 and a brokerage of $100.

(d)

To determine

To Prepare: journal entry for accrued interest.

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Answer 3

Question

Chapter 13, Problem 3EX

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 Corporation B.

(b)

To determine

To Prepare: journal entry to record the interest revenue received.

(c)

To determine

To Prepare: journal entry for $30,000 bonds sold at 99%, with an accrued interest of $150 and a brokerage of $100.

(d)

To determine

To Prepare: journal entry for accrued interest.

Expert Solution & Answer

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Answer 4

Question

Chapter 13, Problem 3EX

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 Corporation B.

(b)

To determine

To Prepare: journal entry to record the interest revenue received.

(c)

To determine

To Prepare: journal entry for $30,000 bonds sold at 99%, with an accrued interest of $150 and a brokerage of $100.

(d)

To determine

To Prepare: journal entry for accrued interest.

Expert Solution & Answer

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Answer 5

Chapter 13, Problem 3EX

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 Corporation B.

(b)

To determine

To Prepare: journal entry to record the interest revenue received.

(c)

To determine

To Prepare: journal entry for $30,000 bonds sold at 99%, with an accrued interest of $150 and a brokerage of $100.

(d)

To determine

To Prepare: journal entry for accrued interest.

Answer 6

Chapter 13, Problem 3EX

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 Corporation B.

Answer 7

Chapter 13, Problem 3EX

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 Corporation B.

Answer 8

(b)

To determine

To Prepare: journal entry to record the interest revenue received.

Answer 9

(b)

To determine

To Prepare: journal entry to record the interest revenue received.

Answer 10

(c)

To determine

To Prepare: journal entry for $30,000 bonds sold at 99%, with an accrued interest of $150 and a brokerage of $100.

Answer 11

(c)

To determine

To Prepare: journal entry for $30,000 bonds sold at 99%, with an accrued interest of $150 and a brokerage of $100.

Answer 12

(d)

To determine

To Prepare: journal entry for accrued interest.

Answer 13

(d)

To determine

To Prepare: journal entry for accrued interest.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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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To Prepare: journal entry to record the interest revenue received.

To Prepare: journal entry for $30,000 bonds sold at 99%, with an accrued interest of $150 and a brokerage of $100.

To Prepare: journal entry for accrued interest.

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Chapter 13 Solutions