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 $150000 Cash $150000 (For recording purchase of bond) June.30, 2016 Cash $2250 Interest Revenue $2250 (For recording interest on bond) Dec.31, 2016 Cash $2250 Interest Revenue $2250 (For recording interest on bond)

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Answer 1

Question

Chapter 15, Problem E15.8E

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 $150000

Cash $150000

(For recording purchase of bond)

June.30, 2016 Cash $2250

Interest Revenue $2250

(For recording interest on bond)

Dec.31, 2016 Cash $2250

Interest Revenue $2250

(For recording interest on bond)

To determine

Requirement 2;

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

Main solution:

Date Accounts Title Debit Credit

Dec. 31, 2030 Cash $150000

Long-term Investment –Held-to-Maturity $150000

(For recording sale of bond)

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Students have asked these similar questions

A bank lent $100,000 to a customer on December 1 that required the customer topay an annual percentage rate (APR) of 12% on the amount of the loan. The loan is duein six months and no payment of interest or principal is to be made until the note is dueon May 31. The bank prepares monthly financial statements at the end of each calendarmonth. The following questions pertain to the adjusting entry that the bank will be making for its accounting records. Question: What date should be used to record the December adjusting entry?

Typically an adjusting entry will include which of the following? One Balance Sheet Account And One Income Statement Account Two Balance Sheet Accounts Two Income Statement Accounts

Which type of adjusting entry is often reversed on the first day of the next accounting period? Accrual Deferral Depreciation

Answer 2

Question

Chapter 15, Problem E15.8E

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 $150000

Cash $150000

(For recording purchase of bond)

June.30, 2016 Cash $2250

Interest Revenue $2250

(For recording interest on bond)

Dec.31, 2016 Cash $2250

Interest Revenue $2250

(For recording interest on bond)

To determine

Requirement 2;

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

Main solution:

Date Accounts Title Debit Credit

Dec. 31, 2030 Cash $150000

Long-term Investment –Held-to-Maturity $150000

(For recording sale of bond)

Expert Solution & Answer

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Answer 3

Question

Chapter 15, Problem E15.8E

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 $150000

Cash $150000

(For recording purchase of bond)

June.30, 2016 Cash $2250

Interest Revenue $2250

(For recording interest on bond)

Dec.31, 2016 Cash $2250

Interest Revenue $2250

(For recording interest on bond)

To determine

Requirement 2;

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

Main solution:

Date Accounts Title Debit Credit

Dec. 31, 2030 Cash $150000

Long-term Investment –Held-to-Maturity $150000

(For recording sale of bond)

Expert Solution & Answer

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Answer 4

Question

Chapter 15, Problem E15.8E

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 $150000

Cash $150000

(For recording purchase of bond)

June.30, 2016 Cash $2250

Interest Revenue $2250

(For recording interest on bond)

Dec.31, 2016 Cash $2250

Interest Revenue $2250

(For recording interest on bond)

To determine

Requirement 2;

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

Main solution:

Date Accounts Title Debit Credit

Dec. 31, 2030 Cash $150000

Long-term Investment –Held-to-Maturity $150000

(For recording sale of bond)

Expert Solution & Answer

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Answer 5

Chapter 15, Problem E15.8E

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 $150000

Cash $150000

(For recording purchase of bond)

June.30, 2016 Cash $2250

Interest Revenue $2250

(For recording interest on bond)

Dec.31, 2016 Cash $2250

Interest Revenue $2250

(For recording interest on bond)

To determine

Requirement 2;

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

Main solution:

Date Accounts Title Debit Credit

Dec. 31, 2030 Cash $150000

Long-term Investment –Held-to-Maturity $150000

(For recording sale of bond)

Answer 6

Chapter 15, Problem E15.8E

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 $150000

Cash $150000

(For recording purchase of bond)

June.30, 2016 Cash $2250

Interest Revenue $2250

(For recording interest on bond)

Dec.31, 2016 Cash $2250

Interest Revenue $2250

(For recording interest on bond)

Answer 7

Chapter 15, Problem E15.8E

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 $150000

Cash $150000

(For recording purchase of bond)

June.30, 2016 Cash $2250

Interest Revenue $2250

(For recording interest on bond)

Dec.31, 2016 Cash $2250

Interest Revenue $2250

(For recording interest on bond)

Answer 8

To determine

Requirement 2;

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

Main solution:

Date Accounts Title Debit Credit

Dec. 31, 2030 Cash $150000

Long-term Investment –Held-to-Maturity $150000

(For recording sale of bond)

Answer 9

To determine

Requirement 2;

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

Main solution:

Date Accounts Title Debit Credit

Dec. 31, 2030 Cash $150000

Long-term Investment –Held-to-Maturity $150000

(For recording sale of bond)

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

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

Date	Accounts Title	Debit	Credit
Jan. 1, 2016	Long-term Investment –Held-to-Maturity	$150000
	Cash		$150000
	(For recording purchase of bond)

June.30, 2016	Cash	$2250
	Interest Revenue		$2250
	(For recording interest on bond)

Dec.31, 2016	Cash	$2250
	Interest Revenue		$2250
	(For recording interest on bond)

Date	Accounts Title	Debit	Credit
Dec. 31, 2030	Cash	$150000
	Long-term Investment –Held-to-Maturity		$150000
	(For recording sale of bond)

Requirement 2; To prepare: Journal entry for disposition of bond on maurity. Main solution: Date Accounts Title Debit Credit Dec. 31, 2030 Cash $150000 Long-term Investment –Held-to-Maturity $150000 (For recording sale of bond)

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Chapter 15 Solutions

Requirement 2;

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

Main solution:

Date Accounts Title Debit Credit

Dec. 31, 2030 Cash $150000

Long-term Investment –Held-to-Maturity $150000

(For recording sale of bond)