Interest payments received on a bond held with the business objective of actively trading should be recorded

Question:

Interest payments received on a bond held with the business objective of actively trading should be recorded as:

a. Dr. Cash XXX
Cr. Interest Income XXX
Cr. Interest Receivable XXX

b. Dr. Interest Income XXX
Dr. Interest Receivable XXX
Cr. Cash XXX

c. Dr. Cash XXX
Cr. Investment XXX

d. Dr. Investment XXX
Cr. Gain on Investment XXX

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamental Accounting Principles Volume II

ISBN: 978-1260305838

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

See More Books

Question Posted: Dec 19, 2019 04:20 AM

See More Questions

Refer to the data in PE 12-53. Using the effective-interest method of bond premium amortization, make the necessary journal entries to record the first two interest payments received on the bonds.
A bond held with the business objective to actively trade should be accounted for using which of the following methods: a. Amortized cost method b. FV through profit and loss method c. FV through OCI...
Q1. Bond Prices For example, if a $100,000 bond is issued at 102 the bond will sell for 102% of the face value or for $102,000. a. A $100,000 bond issued @ 99 will sell for ___________ of the face...
In SSL and TLS, why is there a separate Change Cipher Spec Protocol rather than including a change_cipher_spec message in the Handshake Protocol?
Use mathematical induction to prove that a b is a factor of an bn whenever n is a positive integer.
Does it have correct contact information? Most employers have to evaluate hundreds of resumes each week. If you want your resume to have a good chance of being read by prospective employers, you must...
Melville College is a small liberal arts school located in Massachusetts. It is evaluating its botany program because the programs tuition revenues and costs recently produced an $80,000 loss, which...
O'Connor Video Center accumulates the following cost and market data at December 31. Compute the lower-of-cost-or-market valuation for O'Connor'sinventory. Categories Cameras Camcorders DVDs...
You Just won a lottery that promise to pay you 100,000 exactly 10 years from now. Because the 100,000 is guaranteed by the government, opportunities exist to sell the claim today for an immediate...
Bike World, Inc., wholesales a line of custom road bikes. Bike World?s inventory as of November 30, 2018, consisted of 22 mountain bikes costing $1,650 each. Bike World?s trial balance as of November...
The following events are for King Investment Inc.: Required Prepare general journal entries to record each transaction. Round per share calculations to two decimal places. 2020 Purchased 187,600...
When share investments are accounted for using the equity method, when should investment income be recognized? What accounts are debited and credited?
In Exercises, complete the following for each function. (a) Find intervals where the function is increasing or decreasing, and determine any relative extrema. (b) Find intervals where the function is...
TranscribedText: 4. DQ 5. Create your initial post on the DQ 5 Discussion Board in response to the following: e There are many different opinions about how media, specifically TV and the Internet,...
Star Trek LLC has 8,000 bonds, two million shares of preferred stock outstanding and seven million shares of common stock outstanding. If the common shares are selling for $17 per share, the...
So the component of the flow velocity that is perpendicular to the isobar in cm/s is: V =2V cos(0)=2(10/(1+2 sin(0))) cos(0) V (10)/[1+2(1) sin(90)] = V = 3.3cm/s
2. The CIBC stock price was very volatile today. a. Using the website below, what did the price of CIBC shares end the day at ? CM.TO: Canadian Imperial Bank of Commerce - Yahoo Finance b. In a brief...
Answer the following according to Florida rules: Abigail Atlas was chatting quietly in the hall outside Courtroom 14-1 with Mariel Topher, an employee of the Hopper Law Firm that was representing...
Quiet Running, a closely held LLC, produces electric cars. It recently secured the rights to a patent that will allow it to produce such cars with a cruising range of nearly 500 miles. In order to...
Write a declaration for each of the following: a. A line that extends from point (60, 100) to point (30, 90) b. A rectangle that is 20 pixels wide, 100 pixels high, and has its upper-left corner at...
A job cost sheet of Nilson Company is given below. Instructions(a) Answer the following questions.(1) What are the source documents for direct materials, direct labor, and manufacturing overhead...
In the course of routine checking of all journal entries prior to preparing yearend reports, Diane Riser discovered several strange entries. She recalled that the presidents son Ron had come in to...
In the course of routine checking of all journal entries prior to preparing yearend reports, Diane Riser discovered several strange entries. She recalled that the presidents son Ron had come in to...
Use the future value formula to find the indicated value. n=20; i = 0.03; PMT = $80; FV = ? FV=$1 (Round to the nearest cent.)
An unlevered firm has an EBIT = $250,000, aftertax net income = $165,000, and a cost of capital of 12%. A levered firm with the same assets and operations has $1.25 million in face value debt paying...
Suppose Mike Inc. has 100 shares outstanding. It receives a constant net income of $1,000 annually and will pay all of it as dividends. What is the stock price today? Assuming the required rate of...

Interest payments received on a bond held with the business objective of actively trading should be recorded

Question:

Step by Step Answer:

a Dr Cash XX...View the full answer

Fundamental Accounting Principles Volume II

Students also viewed these Business questions