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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At the end of the current year, the owners' equity in Daniels Inc. is now $520,000. During the year, the assets of the business had increased by $145,000 and the liabilities had increased by $93,000. What must Owners' equity at the beginning of the year have been?

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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.

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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.

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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