Held-to-Maturity Investments: The investments when purchased are required to be classified on the basis of factors include – a. Intent to hold investment b. Length of time i.e. till maturity. When it is given that the investment has been purchased with the intent to hold till maturity it is considered as Held-to-maturity investment. The journal entries on the purchase of Held-tomaturity investment and on the receipt of interest revenue on the Held-tomaturity investments are as follows – Date Accounts Titles and Descriptions Debit (Amount in $) Credit (Amount in $) Long term investment - Held-tomaturity Cash (To record purchase of held-to-maturity investment) Cash Interest Revenue (To record interest received on held-to-maturity investment) Correct option for recording the interest revenue received on bond investment.

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Answer 1

Question

Chapter 15, Problem 3QC

To determine

Concept introduction:

Held-to-Maturity Investments:

The investments when purchased are required to be classified on the basis of factors include –

a. Intent to hold investment

b. Length of time i.e. till maturity.

When it is given that the investment has been purchased with the intent to hold till maturity it is considered as Held-to-maturity investment.

The journal entries on the purchase of Held-tomaturity investment and on the receipt of interest revenue on the Held-tomaturity investments are as follows –

Date Accounts Titles and Descriptions Debit (Amount in $) Credit (Amount in $)

Long term investment - Held-tomaturity

Cash

(To record purchase of held-to-maturity investment)

Cash

Interest Revenue

(To record interest received on held-to-maturity investment)

Correct option for recording the interest revenue received on bond investment.

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Harrison's Heavy Equipment, Inc., is a company that manufactures bulldozers. During the year, Harrison purchased $2,140,000 of direct materials and placed $1,890,000 worth of direct materials into production. Harrison's beginning balance in the Materials Inventory account was $320,000. What is the ending balance in Harrison's Materials Inventory account?

Answer 2

Question

Chapter 15, Problem 3QC

To determine

Concept introduction:

Held-to-Maturity Investments:

The investments when purchased are required to be classified on the basis of factors include –

a. Intent to hold investment

b. Length of time i.e. till maturity.

When it is given that the investment has been purchased with the intent to hold till maturity it is considered as Held-to-maturity investment.

The journal entries on the purchase of Held-tomaturity investment and on the receipt of interest revenue on the Held-tomaturity investments are as follows –

Date Accounts Titles and Descriptions Debit (Amount in $) Credit (Amount in $)

Long term investment - Held-tomaturity

Cash

(To record purchase of held-to-maturity investment)

Cash

Interest Revenue

(To record interest received on held-to-maturity investment)

Correct option for recording the interest revenue received on bond investment.

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Answer 3

Question

Chapter 15, Problem 3QC

To determine

Concept introduction:

Held-to-Maturity Investments:

The investments when purchased are required to be classified on the basis of factors include –

a. Intent to hold investment

b. Length of time i.e. till maturity.

When it is given that the investment has been purchased with the intent to hold till maturity it is considered as Held-to-maturity investment.

The journal entries on the purchase of Held-tomaturity investment and on the receipt of interest revenue on the Held-tomaturity investments are as follows –

Date Accounts Titles and Descriptions Debit (Amount in $) Credit (Amount in $)

Long term investment - Held-tomaturity

Cash

(To record purchase of held-to-maturity investment)

Cash

Interest Revenue

(To record interest received on held-to-maturity investment)

Correct option for recording the interest revenue received on bond investment.

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Answer 4

Question

Chapter 15, Problem 3QC

To determine

Concept introduction:

Held-to-Maturity Investments:

The investments when purchased are required to be classified on the basis of factors include –

a. Intent to hold investment

b. Length of time i.e. till maturity.

When it is given that the investment has been purchased with the intent to hold till maturity it is considered as Held-to-maturity investment.

The journal entries on the purchase of Held-tomaturity investment and on the receipt of interest revenue on the Held-tomaturity investments are as follows –

Date Accounts Titles and Descriptions Debit (Amount in $) Credit (Amount in $)

Long term investment - Held-tomaturity

Cash

(To record purchase of held-to-maturity investment)

Cash

Interest Revenue

(To record interest received on held-to-maturity investment)

Correct option for recording the interest revenue received on bond investment.

Expert Solution & Answer

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Answer 5

Chapter 15, Problem 3QC

To determine

Concept introduction:

Held-to-Maturity Investments:

The investments when purchased are required to be classified on the basis of factors include –

a. Intent to hold investment

b. Length of time i.e. till maturity.

When it is given that the investment has been purchased with the intent to hold till maturity it is considered as Held-to-maturity investment.

The journal entries on the purchase of Held-tomaturity investment and on the receipt of interest revenue on the Held-tomaturity investments are as follows –

Date Accounts Titles and Descriptions Debit (Amount in $) Credit (Amount in $)

Long term investment - Held-tomaturity

Cash

(To record purchase of held-to-maturity investment)

Cash

Interest Revenue

(To record interest received on held-to-maturity investment)

Correct option for recording the interest revenue received on bond investment.

Answer 6

Chapter 15, Problem 3QC

To determine

Concept introduction:

Held-to-Maturity Investments:

The investments when purchased are required to be classified on the basis of factors include –

a. Intent to hold investment

b. Length of time i.e. till maturity.

When it is given that the investment has been purchased with the intent to hold till maturity it is considered as Held-to-maturity investment.

The journal entries on the purchase of Held-tomaturity investment and on the receipt of interest revenue on the Held-tomaturity investments are as follows –

Date Accounts Titles and Descriptions Debit (Amount in $) Credit (Amount in $)

Long term investment - Held-tomaturity

Cash

(To record purchase of held-to-maturity investment)

Cash

Interest Revenue

(To record interest received on held-to-maturity investment)

Correct option for recording the interest revenue received on bond investment.

Answer 7

Chapter 15, Problem 3QC

To determine

Concept introduction:

Held-to-Maturity Investments:

The investments when purchased are required to be classified on the basis of factors include –

a. Intent to hold investment

b. Length of time i.e. till maturity.

When it is given that the investment has been purchased with the intent to hold till maturity it is considered as Held-to-maturity investment.

The journal entries on the purchase of Held-tomaturity investment and on the receipt of interest revenue on the Held-tomaturity investments are as follows –

Date Accounts Titles and Descriptions Debit (Amount in $) Credit (Amount in $)

Long term investment - Held-tomaturity

Cash

(To record purchase of held-to-maturity investment)

Cash

Interest Revenue

(To record interest received on held-to-maturity investment)

Correct option for recording the interest revenue received on bond investment.

Answer 8

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Answer 9

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Answer 11

Ch. 15 - Prob. 1QC Ch. 15 - Which of the following investments is most likely...Ch. 15 - Prob. 3QC Ch. 15 - A company invested $45,000 in Yale Co. stock. The...Ch. 15 - Prob. 5QC Ch. 15 - Prob. 6QC Ch. 15 - Prob. 7QC Ch. 15 - Prob. 8QC Ch. 15 - Prob. 9QC Ch. 15 - Prob. 10QC

Date	Accounts Titles and Descriptions	Debit (Amount in $)	Credit (Amount in $)
	Long term investment - Held-tomaturity
	Cash
	(To record purchase of held-to-maturity investment)

	Cash
	Interest Revenue
	(To record interest received on held-to-maturity investment)

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