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.

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Please help me solve this general accounting problem with the correct financial process.

Brightway Corporation began using the allowance method in 2020. On January 1, 2020, Brightway had a $5,000 balance in the accounts receivable account and a zero balance in the allowance for doubtful accounts. During 2020, Brightway provided $30,000 of services on account. The company estimated that 4% of ending accounts receivable would be uncollectible. By the end of 2020, customers had paid $26,000 on their accounts. What is the balance in Brightway Corporation's Allowance for Doubtful Accounts at December 31, 2020?

Please provide the correct answer to this general accounting problem using valid calculations.

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.