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& Explanation Debit Credit Jan. 2, 2016 Long-term Investment –Held-to-Maturity $800000 Cash $800000 (For recording purchase of bond) June.30, 2016 Cash $16000 Interest Revenue $16000 (For recording interest on bond) Dec.31, 2016 Cash $16000 Interest Revenue $16000 (For recording interest on bond)

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Answer 1

Question

Chapter 15, Problem E15.9E

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& Explanation Debit Credit

Jan. 2, 2016 Long-term Investment –Held-to-Maturity $800000

Cash $800000

(For recording purchase of bond)

June.30, 2016 Cash $16000

Interest Revenue $16000

(For recording interest on bond)

Dec.31, 2016 Cash $16000

Interest Revenue $16000

(For recording interest on bond)

To determine

Requirement 2;

To calculate: Amount of interest received each year from CocoCorp.

Main solution:

Amount of interest received each year from CocoCorp = $32000

To determine

Requirement 3;

To calculate: Amount of interest revenue recognized during 2016.

Main solution:

Amount of interest revenue recognized during 2016 = $32000

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Answer 2

Question

Chapter 15, Problem E15.9E

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& Explanation Debit Credit

Jan. 2, 2016 Long-term Investment –Held-to-Maturity $800000

Cash $800000

(For recording purchase of bond)

June.30, 2016 Cash $16000

Interest Revenue $16000

(For recording interest on bond)

Dec.31, 2016 Cash $16000

Interest Revenue $16000

(For recording interest on bond)

To determine

Requirement 2;

To calculate: Amount of interest received each year from CocoCorp.

Main solution:

Amount of interest received each year from CocoCorp = $32000

To determine

Requirement 3;

To calculate: Amount of interest revenue recognized during 2016.

Main solution:

Amount of interest revenue recognized during 2016 = $32000

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Answer 3

Question

Chapter 15, Problem E15.9E

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& Explanation Debit Credit

Jan. 2, 2016 Long-term Investment –Held-to-Maturity $800000

Cash $800000

(For recording purchase of bond)

June.30, 2016 Cash $16000

Interest Revenue $16000

(For recording interest on bond)

Dec.31, 2016 Cash $16000

Interest Revenue $16000

(For recording interest on bond)

To determine

Requirement 2;

To calculate: Amount of interest received each year from CocoCorp.

Main solution:

Amount of interest received each year from CocoCorp = $32000

To determine

Requirement 3;

To calculate: Amount of interest revenue recognized during 2016.

Main solution:

Amount of interest revenue recognized during 2016 = $32000

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Answer 4

Question

Chapter 15, Problem E15.9E

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& Explanation Debit Credit

Jan. 2, 2016 Long-term Investment –Held-to-Maturity $800000

Cash $800000

(For recording purchase of bond)

June.30, 2016 Cash $16000

Interest Revenue $16000

(For recording interest on bond)

Dec.31, 2016 Cash $16000

Interest Revenue $16000

(For recording interest on bond)

To determine

Requirement 2;

To calculate: Amount of interest received each year from CocoCorp.

Main solution:

Amount of interest received each year from CocoCorp = $32000

To determine

Requirement 3;

To calculate: Amount of interest revenue recognized during 2016.

Main solution:

Amount of interest revenue recognized during 2016 = $32000

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Answer 5

Chapter 15, Problem E15.9E

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& Explanation Debit Credit

Jan. 2, 2016 Long-term Investment –Held-to-Maturity $800000

Cash $800000

(For recording purchase of bond)

June.30, 2016 Cash $16000

Interest Revenue $16000

(For recording interest on bond)

Dec.31, 2016 Cash $16000

Interest Revenue $16000

(For recording interest on bond)

To determine

Requirement 2;

To calculate: Amount of interest received each year from CocoCorp.

Main solution:

Amount of interest received each year from CocoCorp = $32000

To determine

Requirement 3;

To calculate: Amount of interest revenue recognized during 2016.

Main solution:

Amount of interest revenue recognized during 2016 = $32000

Answer 6

Chapter 15, Problem E15.9E

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& Explanation Debit Credit

Jan. 2, 2016 Long-term Investment –Held-to-Maturity $800000

Cash $800000

(For recording purchase of bond)

June.30, 2016 Cash $16000

Interest Revenue $16000

(For recording interest on bond)

Dec.31, 2016 Cash $16000

Interest Revenue $16000

(For recording interest on bond)

Answer 7

Chapter 15, Problem E15.9E

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& Explanation Debit Credit

Jan. 2, 2016 Long-term Investment –Held-to-Maturity $800000

Cash $800000

(For recording purchase of bond)

June.30, 2016 Cash $16000

Interest Revenue $16000

(For recording interest on bond)

Dec.31, 2016 Cash $16000

Interest Revenue $16000

(For recording interest on bond)

Answer 8

To determine

Requirement 2;

To calculate: Amount of interest received each year from CocoCorp.

Main solution:

Amount of interest received each year from CocoCorp = $32000

Answer 9

To determine

Requirement 2;

To calculate: Amount of interest received each year from CocoCorp.

Main solution:

Amount of interest received each year from CocoCorp = $32000

Answer 10

To determine

Requirement 3;

To calculate: Amount of interest revenue recognized during 2016.

Main solution:

Amount of interest revenue recognized during 2016 = $32000

Answer 11

To determine

Requirement 3;

To calculate: Amount of interest revenue recognized during 2016.

Main solution:

Amount of interest revenue recognized during 2016 = $32000

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

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Requirement 2;

To calculate: Amount of interest received each year from CocoCorp.

Main solution:

Amount of interest received each year from CocoCorp = $32000

Requirement 3;

To calculate: Amount of interest revenue recognized during 2016.

Main solution:

Amount of interest revenue recognized during 2016 = $32000

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Chapter 15 Solutions

Date	Accounts Title& Explanation	Debit	Credit
Jan. 2, 2016	Long-term Investment –Held-to-Maturity	$800000
	Cash		$800000
	(For recording purchase of bond)

June.30, 2016	Cash	$16000
	Interest Revenue		$16000
	(For recording interest on bond)

Dec.31, 2016	Cash	$16000
	Interest Revenue		$16000
	(For recording interest on bond)

Videos

Requirement 2; To calculate: Amount of interest received each year from CocoCorp. Main solution: Amount of interest received each year from CocoCorp = $32000

Requirement 3; To calculate: Amount of interest revenue recognized during 2016. Main solution: Amount of interest revenue recognized during 2016 = $32000

Want to see the full answer?

Chapter 15 Solutions

Requirement 2;

To calculate: Amount of interest received each year from CocoCorp.

Main solution:

Amount of interest received each year from CocoCorp = $32000

Requirement 3;

To calculate: Amount of interest revenue recognized during 2016.

Main solution:

Amount of interest revenue recognized during 2016 = $32000