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 $400000 Cash $700000 (For recording purchase of bond) June.30, 2016 Cash $10000 Interest Revenue $10000 (For recording interest on bond) Dec.31, 2016 Cash $10000 Interest Revenue $10000 (For recording interest on bond)

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Answer 1

Question

Chapter 15, Problem P15.20APGA

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 $400000

Cash $700000

(For recording purchase of bond)

June.30, 2016 Cash $10000

Interest Revenue $10000

(For recording interest on bond)

Dec.31, 2016 Cash $10000

Interest Revenue $10000

(For recording interest on bond)

To determine

Requirement 2;

To prepare: Journal entry at the time of maturity of the bond.

Main solution:

Date Accounts Title Debit Credit

Dec. 31, 2020 Cash $400000

Long-term Investment –Held-to-Maturity $400000

(For recording disposal of bond at maturity)

Expert Solution & Answer

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Answer 2

Question

Chapter 15, Problem P15.20APGA

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 $400000

Cash $700000

(For recording purchase of bond)

June.30, 2016 Cash $10000

Interest Revenue $10000

(For recording interest on bond)

Dec.31, 2016 Cash $10000

Interest Revenue $10000

(For recording interest on bond)

To determine

Requirement 2;

To prepare: Journal entry at the time of maturity of the bond.

Main solution:

Date Accounts Title Debit Credit

Dec. 31, 2020 Cash $400000

Long-term Investment –Held-to-Maturity $400000

(For recording disposal of bond at maturity)

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 15, Problem P15.20APGA

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 $400000

Cash $700000

(For recording purchase of bond)

June.30, 2016 Cash $10000

Interest Revenue $10000

(For recording interest on bond)

Dec.31, 2016 Cash $10000

Interest Revenue $10000

(For recording interest on bond)

To determine

Requirement 2;

To prepare: Journal entry at the time of maturity of the bond.

Main solution:

Date Accounts Title Debit Credit

Dec. 31, 2020 Cash $400000

Long-term Investment –Held-to-Maturity $400000

(For recording disposal of bond at maturity)

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 15, Problem P15.20APGA

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 $400000

Cash $700000

(For recording purchase of bond)

June.30, 2016 Cash $10000

Interest Revenue $10000

(For recording interest on bond)

Dec.31, 2016 Cash $10000

Interest Revenue $10000

(For recording interest on bond)

To determine

Requirement 2;

To prepare: Journal entry at the time of maturity of the bond.

Main solution:

Date Accounts Title Debit Credit

Dec. 31, 2020 Cash $400000

Long-term Investment –Held-to-Maturity $400000

(For recording disposal of bond at maturity)

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 15, Problem P15.20APGA

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 $400000

Cash $700000

(For recording purchase of bond)

June.30, 2016 Cash $10000

Interest Revenue $10000

(For recording interest on bond)

Dec.31, 2016 Cash $10000

Interest Revenue $10000

(For recording interest on bond)

To determine

Requirement 2;

To prepare: Journal entry at the time of maturity of the bond.

Main solution:

Date Accounts Title Debit Credit

Dec. 31, 2020 Cash $400000

Long-term Investment –Held-to-Maturity $400000

(For recording disposal of bond at maturity)

Answer 6

Chapter 15, Problem P15.20APGA

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 $400000

Cash $700000

(For recording purchase of bond)

June.30, 2016 Cash $10000

Interest Revenue $10000

(For recording interest on bond)

Dec.31, 2016 Cash $10000

Interest Revenue $10000

(For recording interest on bond)

Answer 7

Chapter 15, Problem P15.20APGA

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 $400000

Cash $700000

(For recording purchase of bond)

June.30, 2016 Cash $10000

Interest Revenue $10000

(For recording interest on bond)

Dec.31, 2016 Cash $10000

Interest Revenue $10000

(For recording interest on bond)

Answer 8

To determine

Requirement 2;

To prepare: Journal entry at the time of maturity of the bond.

Main solution:

Date Accounts Title Debit Credit

Dec. 31, 2020 Cash $400000

Long-term Investment –Held-to-Maturity $400000

(For recording disposal of bond at maturity)

Answer 9

To determine

Requirement 2;

To prepare: Journal entry at the time of maturity of the bond.

Main solution:

Date Accounts Title Debit Credit

Dec. 31, 2020 Cash $400000

Long-term Investment –Held-to-Maturity $400000

(For recording disposal of bond at maturity)

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

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Requirement 2;

To prepare: Journal entry at the time of maturity of the bond.

Main solution:

Date Accounts Title Debit Credit

Dec. 31, 2020 Cash $400000

Long-term Investment –Held-to-Maturity $400000

(For recording disposal of bond at maturity)

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Chapter 15 Solutions

Date	Accounts Title	Debit	Credit
Jan. 1, 2016	Long-term Investment –Held-to-Maturity	$400000
	Cash		$700000
	(For recording purchase of bond)

June.30, 2016	Cash	$10000
	Interest Revenue		$10000
	(For recording interest on bond)

Dec.31, 2016	Cash	$10000
	Interest Revenue		$10000
	(For recording interest on bond)

Date	Accounts Title	Debit	Credit
Dec. 31, 2020	Cash	$400000
	Long-term Investment –Held-to-Maturity		$400000
	(For recording disposal of bond at maturity)

Videos

Requirement 2; To prepare: Journal entry at the time of maturity of the bond. Main solution: Date Accounts Title Debit Credit Dec. 31, 2020 Cash $400000 Long-term Investment –Held-to-Maturity $400000 (For recording disposal of bond at maturity)

Want to see the full answer?

Chapter 15 Solutions

Requirement 2;

To prepare: Journal entry at the time of maturity of the bond.

Main solution:

Date Accounts Title Debit Credit

Dec. 31, 2020 Cash $400000

Long-term Investment –Held-to-Maturity $400000

(For recording disposal of bond at maturity)