Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each types of securities will be different. Requirement 1; To prepare: Classification of bond investment in the balance sheet at December 31, 2016. Main solution: Balance Sheet (Partial) As at December 31, 2016 Assets Non-current asset; Long-term investment – Held-to-maturity securities

Question

Want to see the full answer?

Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 15, Problem E15.10E

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each types of securities will be different.

Requirement 1;

To prepare: Classification of bond investment in the balance sheet at December 31, 2016.

Main solution:

Balance Sheet (Partial)

As at December 31, 2016

Assets

Non-current asset;

Long-term investment – Held-to-maturity securities

To determine

Requirement 2 (a);

To prepare: Journal entry for interest payment on December 31, 2020.

Main solution:

Date Accounts Title Debit Credit

Dec.31, 2020 Cash $18000

Interest Revenue $18000

(For recording interest on bond)

To determine

Requirement 2 (b);

To prepare: Journal entry for disposal of investment on maturity.

Main solution:

Date Accounts Title Debit Credit

Dec.31, 2020 Cash $1200000

Long-Term Investment –Held-to-Maturity $1200000

(For recording disposal of investment)

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

What is the correct answer of this question general Accounting?

Financial accounting

PART B The Palmer School of Business operates a transportation service, solely for the purpose of providing commuting services to off-campus students. You have been hired as accounting students to analyze the cost of providing the transportation services and to develop a cost function which describes the behaviour of the related costs. The schools' administration has assembled the data for a twelve-month period pertaining to the monthly total costs of providing the service and the corresponding number of students who used the transportation system each month. You were recently taught how to use the Excel graphing tool, and a member of the team successfully generated the scattergram given below from the data set provided. Total Transportation Costs PALMER SCHOOL OF BUSINESS SCATTER DIAGRAM 300,000 Line of Best Fit 250,000 200,000 150,000 100,000 50,000 0 500 1,000 1,500 # of Students 2,000 2,500 3,000 The other team members are now tasked to use the graph to provide the administrators…

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 15, Problem E15.10E

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each types of securities will be different.

Requirement 1;

To prepare: Classification of bond investment in the balance sheet at December 31, 2016.

Main solution:

Balance Sheet (Partial)

As at December 31, 2016

Assets

Non-current asset;

Long-term investment – Held-to-maturity securities

To determine

Requirement 2 (a);

To prepare: Journal entry for interest payment on December 31, 2020.

Main solution:

Date Accounts Title Debit Credit

Dec.31, 2020 Cash $18000

Interest Revenue $18000

(For recording interest on bond)

To determine

Requirement 2 (b);

To prepare: Journal entry for disposal of investment on maturity.

Main solution:

Date Accounts Title Debit Credit

Dec.31, 2020 Cash $1200000

Long-Term Investment –Held-to-Maturity $1200000

(For recording disposal of investment)

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 15, Problem E15.10E

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each types of securities will be different.

Requirement 1;

To prepare: Classification of bond investment in the balance sheet at December 31, 2016.

Main solution:

Balance Sheet (Partial)

As at December 31, 2016

Assets

Non-current asset;

Long-term investment – Held-to-maturity securities

To determine

Requirement 2 (a);

To prepare: Journal entry for interest payment on December 31, 2020.

Main solution:

Date Accounts Title Debit Credit

Dec.31, 2020 Cash $18000

Interest Revenue $18000

(For recording interest on bond)

To determine

Requirement 2 (b);

To prepare: Journal entry for disposal of investment on maturity.

Main solution:

Date Accounts Title Debit Credit

Dec.31, 2020 Cash $1200000

Long-Term Investment –Held-to-Maturity $1200000

(For recording disposal of investment)

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 15, Problem E15.10E

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each types of securities will be different.

Requirement 1;

To prepare: Classification of bond investment in the balance sheet at December 31, 2016.

Main solution:

Balance Sheet (Partial)

As at December 31, 2016

Assets

Non-current asset;

Long-term investment – Held-to-maturity securities

To determine

Requirement 2 (a);

To prepare: Journal entry for interest payment on December 31, 2020.

Main solution:

Date Accounts Title Debit Credit

Dec.31, 2020 Cash $18000

Interest Revenue $18000

(For recording interest on bond)

To determine

Requirement 2 (b);

To prepare: Journal entry for disposal of investment on maturity.

Main solution:

Date Accounts Title Debit Credit

Dec.31, 2020 Cash $1200000

Long-Term Investment –Held-to-Maturity $1200000

(For recording disposal of investment)

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 15, Problem E15.10E

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each types of securities will be different.

Requirement 1;

To prepare: Classification of bond investment in the balance sheet at December 31, 2016.

Main solution:

Balance Sheet (Partial)

As at December 31, 2016

Assets

Non-current asset;

Long-term investment – Held-to-maturity securities

To determine

Requirement 2 (a);

To prepare: Journal entry for interest payment on December 31, 2020.

Main solution:

Date Accounts Title Debit Credit

Dec.31, 2020 Cash $18000

Interest Revenue $18000

(For recording interest on bond)

To determine

Requirement 2 (b);

To prepare: Journal entry for disposal of investment on maturity.

Main solution:

Date Accounts Title Debit Credit

Dec.31, 2020 Cash $1200000

Long-Term Investment –Held-to-Maturity $1200000

(For recording disposal of investment)

Answer 6

Chapter 15, Problem E15.10E

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each types of securities will be different.

Requirement 1;

To prepare: Classification of bond investment in the balance sheet at December 31, 2016.

Main solution:

Balance Sheet (Partial)

As at December 31, 2016

Assets

Non-current asset;

Long-term investment – Held-to-maturity securities

Answer 7

Chapter 15, Problem E15.10E

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each types of securities will be different.

Requirement 1;

To prepare: Classification of bond investment in the balance sheet at December 31, 2016.

Main solution:

Balance Sheet (Partial)

As at December 31, 2016

Assets

Non-current asset;

Long-term investment – Held-to-maturity securities

Answer 8

To determine

Requirement 2 (a);

To prepare: Journal entry for interest payment on December 31, 2020.

Main solution:

Date Accounts Title Debit Credit

Dec.31, 2020 Cash $18000

Interest Revenue $18000

(For recording interest on bond)

Answer 9

To determine

Requirement 2 (a);

To prepare: Journal entry for interest payment on December 31, 2020.

Main solution:

Date Accounts Title Debit Credit

Dec.31, 2020 Cash $18000

Interest Revenue $18000

(For recording interest on bond)

Answer 10

To determine

Requirement 2 (b);

To prepare: Journal entry for disposal of investment on maturity.

Main solution:

Date Accounts Title Debit Credit

Dec.31, 2020 Cash $1200000

Long-Term Investment –Held-to-Maturity $1200000

(For recording disposal of investment)

Answer 11

To determine

Requirement 2 (b);

To prepare: Journal entry for disposal of investment on maturity.

Main solution:

Date Accounts Title Debit Credit

Dec.31, 2020 Cash $1200000

Long-Term Investment –Held-to-Maturity $1200000

(For recording disposal of investment)

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

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

Balance Sheet (Partial)
As at December 31, 2016
Assets
Non-current asset;
Long-term investment – Held-to-maturity securities

Date	Accounts Title	Debit	Credit
Dec.31, 2020	Cash	$18000
	Interest Revenue		$18000
	(For recording interest on bond)

Date	Accounts Title	Debit	Credit
Dec.31, 2020	Cash	$1200000
	Long-Term Investment –Held-to-Maturity		$1200000
	(For recording disposal of investment)

Requirement 2 (a); To prepare: Journal entry for interest payment on December 31, 2020. Main solution: Date Accounts Title Debit Credit Dec.31, 2020 Cash $18000 Interest Revenue $18000 (For recording interest on bond)

Requirement 2 (b); To prepare: Journal entry for disposal of investment on maturity. Main solution: Date Accounts Title Debit Credit Dec.31, 2020 Cash $1200000 Long-Term Investment –Held-to-Maturity $1200000 (For recording disposal of investment)

Want to see the full answer?

Chapter 15 Solutions

Requirement 2 (a);

To prepare: Journal entry for interest payment on December 31, 2020.

Main solution:

Date Accounts Title Debit Credit

Dec.31, 2020 Cash $18000

Interest Revenue $18000

(For recording interest on bond)

Requirement 2 (b);

To prepare: Journal entry for disposal of investment on maturity.

Main solution:

Date Accounts Title Debit Credit

Dec.31, 2020 Cash $1200000

Long-Term Investment –Held-to-Maturity $1200000

(For recording disposal of investment)