On January 1, 2015, Randy Incorporated purchased $500,000 of 20-year, 10% bonds when the market rate of
Question:
On January 1, 2015, Randy Incorporated purchased $500,000 of 20-year, 10% bonds when the market rate of interest was 8%. Interest is to be paid on June 30 and December 31 of each year.
1. Prepare the journal entry to record the purchase of the debt security classified as held to maturity.
2. Prepare the journal entry to record the receipt of the first two interest payments, assuming that Randy accounts for the debt security as held to maturity and uses the effective-interest method.
MaturityMaturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
1 Investment in HeldtoMaturity Securities 598970 Cash 598970 To record the purchase of the de...View the full answer
Answered By
Shubhradeep Maity
I am an experienced and talented freelance writer passionate about creating high-quality content. I have over five years of experience working in the field and have collaborated with several renowned companies and clients in the SaaS industry.
At Herman LLC, an online collective of writers, I generated 1,000+ views on my content and created journal content for 100+ clients on finance topics. My efforts led to a 60% increase in customer engagement for finance clients through revamping website pages and email interaction.
Previously, at Gerhold, a data management platform using blockchain, I wrote and published over 50 articles on topics such as Business Finance, Scalability, and Financial Security. I managed four writing projects concurrently and increased the average salary per page from $4 to $7 in three months.
In my previous role at Bernier, I created content for 40+ clients within the finance industry, increasing sales by up to 40%.
I am an accomplished writer with a track record of delivering high-quality content on time and within budget. I am dedicated to helping my clients achieve their goals and providing exceptional results.
1+ Reviews
10+ Question Solved
Related Book For 
Question Posted:
