Corporate Financial Accounting - W/CENGAGENOW
13th Edition
ISBN: 9781285148717
Author: WARREN
Publisher: CENGAGE C
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Chapter D, Problem D.4EX
(a)
To determine
Bond investment: Bond investments are debt securities which pay a fixed interest revenue to the investor.
Debit and credit rules:
- Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.
- Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.
To journalize: The bond investment transaction for purchase of $200,000, 5% bonds of Company M at face value on May 1
(b)
To determine
To journalize: The bond investment transaction to record the semiannual interest revenue received on November 1
(c)
To determine
To journalize: The bond investment transaction $80,000 bonds of Company M sold at 98%, on November 1
(d)
To determine
To journalize: The bond investment transaction for accrued interest of $1,000 on December 31
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Chapter D Solutions
Corporate Financial Accounting - W/CENGAGENOW
Ch. D - Prob. D.1EXCh. D - Entries for stock investments, dividends, and sale...Ch. D - Bond investment transactions Starks Products uses...Ch. D - Prob. D.4EXCh. D - Prob. D.5EXCh. D - Prob. D.6EXCh. D - Prob. D.7EXCh. D - Valuing trading securities at fair value On...Ch. D - Fair value journal entries, trading investments...Ch. D - Fair value journal entries, trading investments...
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