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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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 10

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Answer 11

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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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