Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer for B part please:) LU The following bond transactions occurred during 2021 for the University of Higher Learning (UHL) and Sweetwater Ltd: Feb 1

image text in transcribed
image text in transcribedanswer for B part please:)
LU The following bond transactions occurred during 2021 for the University of Higher Learning (UHL) and Sweetwater Ltd: Feb 1 UHL issued $10.2 million five-year, SX bonds at 94 (this means 94% of face value) at a price to yield a market interest rate of 6.4%. The bonds pay interest semi-annually on August 1 and February 1 1 Sweetwater Ltd. purchased $3.0 million of UHL's bonds at 94 as a long term investment to be held to maturity Aug 1 UHL pald the semi-annual interest on the bonds (a) Your Answer Correct Answer (Used) Your answer is partially correct Prepare all required journal entries for Sweetwater Ltd. the investor to record the above transactions. (List all debit entries before credit entries. Credit account titles ore automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts Round answers to decimal places. es. 5,275) Debit Credit Date Account Titles and Explanation Feb. 1 Istment in Associates 2820000 2820000 Cash 75000 Aug 1 Cash 15240 investment in Alicates est income 101 O List of Accounts Attempts: 3 of 3 used (b) How would the journal entries for Sweetwater Ltd. change if it purchased the investment for trading purposes? (List all debit entries before credit entries Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts Round answers to decimal places, as 5.275) Date Account Titles and Explanation Debit Credit e Textbook and Media

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Theory And Practice

Authors: M. W. E. Glautier, Brian Underdown

7th Edition

0273651617, 978-0273651611

More Books

Students also viewed these Accounting questions

Question

Explain the seven dimensions of an organizations climate.

Answered: 1 week ago

Question

Describe the five types of change.

Answered: 1 week ago