Bond refers to a financial security which is issued by a business entity for raising funds for long-term. Bond generates return for the investors on a specified date and this return can be variable or fixed. Requirement 1 To prepare: Journal entries for the transactions of 2016 Main solution: Date Accounts Title Debit Credit Jan. 1, 2016 Long-term Investment –Held-to-Maturity $700000 Cash $700000 (For recording purchase of bond) June.30, 2016 Cash $15750 Interest Revenue $15750 (For recording interest on bond) Dec.31, 2016 Cash $15750 Interest Revenue $15750 (For recording interest on bond)

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Answer 1

Question

Chapter 15, Problem E15.17E

To determine

Concept Introduction:

Bond refers to a financial security which is issued by a business entity for raising funds for long-term. Bond generates return for the investors on a specified date and this return can be variable or fixed.

Requirement 1

To prepare:

Journal entries for the transactions of 2016

Main solution:

Date Accounts Title Debit Credit

Jan. 1, 2016 Long-term Investment –Held-to-Maturity $700000

Cash $700000

(For recording purchase of bond)

June.30, 2016 Cash $15750

Interest Revenue $15750

(For recording interest on bond)

Dec.31, 2016 Cash $15750

Interest Revenue $15750

(For recording interest on bond)

To determine

Requirement 2;

To prepare: Journal entry for disposition of bond on maturity.

Expert Solution & Answer

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Answer 2

Question

Chapter 15, Problem E15.17E

To determine

Concept Introduction:

Bond refers to a financial security which is issued by a business entity for raising funds for long-term. Bond generates return for the investors on a specified date and this return can be variable or fixed.

Requirement 1

To prepare:

Journal entries for the transactions of 2016

Main solution:

Date Accounts Title Debit Credit

Jan. 1, 2016 Long-term Investment –Held-to-Maturity $700000

Cash $700000

(For recording purchase of bond)

June.30, 2016 Cash $15750

Interest Revenue $15750

(For recording interest on bond)

Dec.31, 2016 Cash $15750

Interest Revenue $15750

(For recording interest on bond)

To determine

Requirement 2;

To prepare: Journal entry for disposition of bond on maturity.

Expert Solution & Answer

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Answer 3

Question

Chapter 15, Problem E15.17E

To determine

Concept Introduction:

Bond refers to a financial security which is issued by a business entity for raising funds for long-term. Bond generates return for the investors on a specified date and this return can be variable or fixed.

Requirement 1

To prepare:

Journal entries for the transactions of 2016

Main solution:

Date Accounts Title Debit Credit

Jan. 1, 2016 Long-term Investment –Held-to-Maturity $700000

Cash $700000

(For recording purchase of bond)

June.30, 2016 Cash $15750

Interest Revenue $15750

(For recording interest on bond)

Dec.31, 2016 Cash $15750

Interest Revenue $15750

(For recording interest on bond)

To determine

Requirement 2;

To prepare: Journal entry for disposition of bond on maturity.

Expert Solution & Answer

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Answer 4

Question

Chapter 15, Problem E15.17E

To determine

Concept Introduction:

Bond refers to a financial security which is issued by a business entity for raising funds for long-term. Bond generates return for the investors on a specified date and this return can be variable or fixed.

Requirement 1

To prepare:

Journal entries for the transactions of 2016

Main solution:

Date Accounts Title Debit Credit

Jan. 1, 2016 Long-term Investment –Held-to-Maturity $700000

Cash $700000

(For recording purchase of bond)

June.30, 2016 Cash $15750

Interest Revenue $15750

(For recording interest on bond)

Dec.31, 2016 Cash $15750

Interest Revenue $15750

(For recording interest on bond)

To determine

Requirement 2;

To prepare: Journal entry for disposition of bond on maturity.

Expert Solution & Answer

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Answer 5

Chapter 15, Problem E15.17E

To determine

Concept Introduction:

Bond refers to a financial security which is issued by a business entity for raising funds for long-term. Bond generates return for the investors on a specified date and this return can be variable or fixed.

Requirement 1

To prepare:

Journal entries for the transactions of 2016

Main solution:

Date Accounts Title Debit Credit

Jan. 1, 2016 Long-term Investment –Held-to-Maturity $700000

Cash $700000

(For recording purchase of bond)

June.30, 2016 Cash $15750

Interest Revenue $15750

(For recording interest on bond)

Dec.31, 2016 Cash $15750

Interest Revenue $15750

(For recording interest on bond)

To determine

Requirement 2;

To prepare: Journal entry for disposition of bond on maturity.

Answer 6

Chapter 15, Problem E15.17E

To determine

Concept Introduction:

Bond refers to a financial security which is issued by a business entity for raising funds for long-term. Bond generates return for the investors on a specified date and this return can be variable or fixed.

Requirement 1

To prepare:

Journal entries for the transactions of 2016

Main solution:

Date Accounts Title Debit Credit

Jan. 1, 2016 Long-term Investment –Held-to-Maturity $700000

Cash $700000

(For recording purchase of bond)

June.30, 2016 Cash $15750

Interest Revenue $15750

(For recording interest on bond)

Dec.31, 2016 Cash $15750

Interest Revenue $15750

(For recording interest on bond)

Answer 7

Chapter 15, Problem E15.17E

To determine

Concept Introduction:

Bond refers to a financial security which is issued by a business entity for raising funds for long-term. Bond generates return for the investors on a specified date and this return can be variable or fixed.

Requirement 1

To prepare:

Journal entries for the transactions of 2016

Main solution:

Date Accounts Title Debit Credit

Jan. 1, 2016 Long-term Investment –Held-to-Maturity $700000

Cash $700000

(For recording purchase of bond)

June.30, 2016 Cash $15750

Interest Revenue $15750

(For recording interest on bond)

Dec.31, 2016 Cash $15750

Interest Revenue $15750

(For recording interest on bond)

Answer 8

To determine

Requirement 2;

To prepare: Journal entry for disposition of bond on maturity.

Answer 9

To determine

Requirement 2;

To prepare: Journal entry for disposition of bond on maturity.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

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Requirement 2;

To prepare: Journal entry for disposition of bond on maturity.

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Chapter 15 Solutions

Date	Accounts Title	Debit	Credit
Jan. 1, 2016	Long-term Investment –Held-to-Maturity	$700000
	Cash		$700000
	(For recording purchase of bond)

June.30, 2016	Cash	$15750
	Interest Revenue		$15750
	(For recording interest on bond)

Dec.31, 2016	Cash	$15750
	Interest Revenue		$15750
	(For recording interest on bond)

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Requirement 2; To prepare: Journal entry for disposition of bond on maturity.

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Chapter 15 Solutions

Requirement 2;

To prepare: Journal entry for disposition of bond on maturity.