Question 4: Anurika Ranches has a May 31, 2021 year end and purchases $100,000 bond investment...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 4: Anurika Ranches has a May 31, 2021 year end and purchases $100,000 bond investment at a price of 109 on February 2, 2021 using cash. The bond pays cash interest at 9% at a time when market rates for investments are 5%. They intend to hold the bond for five years until maturity on August 1, 2026. Interest payments occur on August 1 and February 1 of each year. Round all amounts to the nearest dollar, no descriptions are needed. Any discount or premium will be amortized using the straight line method. 4A. Record the purchase of the bond, be sure to indicate if short term or long-term investment. 4B. Record any entries needed as of the May 31, 2021 year-end for the investor. 4C. Record the entries needed for the first bond payment on August 1, 2021. Marks Available: 5 Question 4: Anurika Ranches has a May 31, 2021 year end and purchases $100,000 bond investment at a price of 109 on February 2, 2021 using cash. The bond pays cash interest at 9% at a time when market rates for investments are 5%. They intend to hold the bond for five years until maturity on August 1, 2026. Interest payments occur on August 1 and February 1 of each year. Round all amounts to the nearest dollar, no descriptions are needed. Any discount or premium will be amortized using the straight line method. 4A. Record the purchase of the bond, be sure to indicate if short term or long-term investment. 4B. Record any entries needed as of the May 31, 2021 year-end for the investor. 4C. Record the entries needed for the first bond payment on August 1, 2021. Marks Available: 5
Expert Answer:
Answer rating: 100% (QA)
Anurika Ranches Bond Investment 4A Record the purchase of the bond Date February 2 2021 Account Long... View the full answer
Posted Date:
Students also viewed these accounting questions
-
share income and losses in a 2:1 ratio after allowing for salaries of $20,000 and $35,000. If the partnership suffers a $20,000 loss, by how much would Jos's capital account change? $25,000 decrease...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...
-
Classify each of the following random variables as either continuous or discrete: a. The survival time of a cancer patient after receiving a new treatment for cancer b. The number of ticks found on a...
-
A process is in statistical control with x = 39.7 and R = 2.5. The control chart uses a sample size of n= 2. Specifications are at 40 ± 5. The quality characteristic is normally distributed....
-
Bargain Mart is formulating its budget for the third quarter of the coming year. Revenue estimates are $800,000 for July, $1,200,000 for August, and $1,000,000 for September. While markups on...
-
Show that if managers think their companys shares are overvalued, there is a better product to issue than a convertible bond.
-
The following account balances come from the records of King Company: During the accounting period, King recorded $21,000 of service revenue on account. The company also wrote off a $180 account...
-
a) (2 points) Is the feasible region bounded or unbounded? Briefly answer. b) (4 points) What are the corner points? c) (6 points) What is the solution to the linear programming problem Maximize: C =...
-
Iterator i = ja. iterator ( ) ; while(i . hasNext( ) ) JSONObject j = (JSONObject ) i. next( ); Double lat = (Double) j . get ("lat") ; Double Ing = (Double ) j . get ("Ing") ; Sys...
-
Discuss appropriate management of diversity, and how it can help in the areas of cost, acquisition, resources, marketing, creativity, problem solving, and flexibility?
-
Equation 4 --> I^2 = (bg/a uo n L) m fixed data: Fixed Data: [mg/cm] 4.38 l [cm] 14.8 N [turns] 550 n [m-1] 37.16216 a [cm] 8.4 b [cm] 8.5 L [cm] 2.2 slope = y = 96364 + 3^-15 calculate the...
-
Objectives Instructions: at least three training course objectives that are specific and measurable. Include what the learner is expected to do (or explain to demonstrate knowledge), the quality or...
-
Calculate the firm's Gross Profit Margin: Balance Sheet (2019) Balance Sheet (2020) Income Statement (2019-2020) Current Assets: 7,000 Total Assets: 15,000 Current Liabilities: 4,000 Total...
-
Each morning, Ned Rouse stocks the drink case at Ned's Beach Hut in Myrtle Beach, South Carolina. The drink case has 95 linear feet of refrigerated drink space. Each linear foot can hold either six...
-
Problem 21-6 Stock versus Cash Offers (LO2) Sweet Cola Corporation (SCC) is bidding to take over Salty Dog Pretzels (SDP). SCC has 2,500 shares outstanding, selling at $50 per share. SDP has 1,500...
-
Chloroplasts are illuminated until the levels of the Calvin cycle intermediates reach a steady state. The light is then turned off. How does the level of RuBP vary after this point?
-
What is synergy?
-
Your new insight into investment policy, especially the link between P/E and PBR, and the rate of return on the investment.
-
Show how the share price of a very profitable company which invests at a rate of return that is higher than the required rate of return can still drop.
Study smarter with the SolutionInn App