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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Charm Industries is a job lot manufacturer. The budget for the month of July calls for 7,500 direct labor hours to be worked. Budgeted overhead is $75,000 with a predetermined rate of $9 per hour. Overhead is applied based on actual direct hours worked. Actual direct hours were 7,800 and actual overhead spending was $85,500. What was the under-applied or over-applied overhead for the month of July? Over-applied is shown as a negative number.

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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)