
Horngren's Accounting (11th Edition)
11th Edition
ISBN: 9780133856781
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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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:
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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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
Chapter 15 Solutions
Horngren's Accounting (11th Edition)
Ch. 15 - Prob. 1QCCh. 15 - Which of the following investments is most likely...Ch. 15 - Prob. 3QCCh. 15 - A company invested $45,000 in Yale Co. stock. The...Ch. 15 - Prob. 5QCCh. 15 - Prob. 6QCCh. 15 - Prob. 7QCCh. 15 - Prob. 8QCCh. 15 - Prob. 9QCCh. 15 - Prob. 10QC
Ch. 15 - Prob. 1RQCh. 15 - Prob. 2RQCh. 15 - Prob. 3RQCh. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQCh. 15 - Prob. 11RQCh. 15 - Prob. 12RQCh. 15 - Prob. 13RQCh. 15 - Prob. 14RQCh. 15 - Prob. S15.1SECh. 15 - Prob. S15.2SECh. 15 - Prob. S15.3SECh. 15 - Prob. S15.4SECh. 15 - Prob. S15.5SECh. 15 - Prob. S15.6SECh. 15 - Prob. S15.7SECh. 15 - Prob. E15.8ECh. 15 - Prob. E15.9ECh. 15 - Prob. E15.10ECh. 15 - Prob. E15.11ECh. 15 - Prob. E15.12ECh. 15 - Prob. E15.13ECh. 15 - Prob. E15.14ECh. 15 - Prob. E15.15ECh. 15 - Prob. E15.16ECh. 15 - Prob. E15.17ECh. 15 - Prob. P15.18APGACh. 15 - Prob. P15.19APGACh. 15 - Prob. P15.20APGACh. 15 - Prob. P15.21BPGBCh. 15 - Prob. P15.22BPGBCh. 15 - Prob. 23CPCh. 15 - Prob. 15.1DCCh. 15 - Prob. 15.1EICh. 15 - Prob. 15.1FCCh. 15 - Financial Statement Case 151 Details about a...
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