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

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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)

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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

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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

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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)

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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

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Answer 13

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Answer 14

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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)

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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)