{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-09T15:27:19-04:00", "answer_date": "2024-06-09 15:27:19", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2522153", "url": "\/study-help\/questions\/exercise-1-4-4-static-investor-effective-2522153", "question_creation_date_js": "2024-06-09T15:27:19-04:00", "question_creation_date": "Jun 09, 2024 03:27 PM", "meta_title": "[Solved] Exercise 1 4 - 4 ( Static ) Investor; eff | SolutionInn", "meta_description": "Answer of - Exercise 1 4 - 4 ( Static ) Investor; effective interest [ L 0 1 4 - 2 ] The Bradford Company issued 1 0 % bonds, date | SolutionInn", "meta_keywords": "exercise,1,4,-,static,investor,effective,interest,l,2,bradford,company", "question_title_h1": "Exercise 1 4 - 4 ( Static ) Investor; effective interest [ L 0 1 4 - 2 ] The Bradford Company issued 1 0", "question_title": "Exercise 1 4 - 4 ( Static ) Investor; effective interest [", "question_title_for_js_snippet": "Exercise 1 4 4 ( Static ) Investor effective interest L 0 1 4 2 The Bradford Company issued 1 0 bonds, dated January 1 , with a face amount of $ 8 0 million on January 1 , 2 0 2 1 to Saxton Bose Corporation The bonds mature on December 3 1 , 2 0 3 0 ( 1 0 years ) For bonds of similar risk and maturity, the market yield is 1 2 Interest is paid semiannually on June 3 0 and December 3 1 ( FV of $ 1 , PV of $ 1 , FVA of $ 1 , PVA of $ 1 , FVAD of $ 1 and PVAD of $ 1 ) Required to 3 Prepare the journal entries to record the purchase of the bonds by Saxton Bose on January 1 , 2 0 2 1 , interest revenue on June 3 0 , 2 0 2 1 and interest revenue on December 3 1 , 2 0 2 1 ( at the effective rate ) ( Enter your answers in whole dollars If no entry is required for a transaction event , select No journal entry required in the first account field ) Answer is not complete table No , Date,General Jo , , Debit,Credit , 1 , January 0 1 , 2 0 2 1 , Investment in bonds, 0 , , , , Cash, 0 , , , 2 , June 3 0 , 2 0 2 1 , Cash,, 4 0 0 0 0 0 0 , , , Discount on investment in bonds, ( 0 ) , , , , Interest revenue,,, , 3 , December 3 1 , 2 0 , Cash, 0 , 4 , 0 0 0 , 0 0 0 , , , Discount on investment in bonds, ( 0 ) , , , , Interest revenue,a , , ", "question_description": "\"image
Exercise <\/span>1<\/mn>4<\/mn>-<\/mo>4<\/mn><\/mtext>(<\/mi><\/mrow><\/math>Static<\/span>)<\/mi><\/mrow><\/math> Investor; effective interest <\/span>[<\/mi><\/mrow><\/math>L<\/span>0<\/mn>1<\/mn>4<\/mn>-<\/mo>2<\/mn>]<\/mi><\/mrow><\/math> <\/div>
The Bradford Company issued <\/span>1<\/mn>0<\/mn>%<\/mo><\/mrow><\/math> bonds, dated January <\/span>1<\/mn>,<\/mo><\/mrow><\/math> with a face amount of $<\/span>8<\/mn>0<\/mn><\/mrow><\/math> million on January <\/span>1<\/mn>,<\/mo>2<\/mn>0<\/mn>2<\/mn>1<\/mn><\/mrow><\/math> to Saxton<\/span>-<\/mo><\/mrow><\/math>Bose Corporation. The bonds mature on December <\/span>3<\/mn>1<\/mn>,<\/mo><\/mtext>2<\/mn>0<\/mn>3<\/mn>0<\/mn><\/mtext>(<\/mi>1<\/mn>0<\/mn><\/mrow><\/math> years<\/span>)<\/mi>.<\/mo><\/mrow><\/math> For bonds of similar risk and maturity, the market yield is <\/span>1<\/mn>2<\/mn>%<\/mo>.<\/mo><\/mrow><\/math> Interest is paid semiannually on June <\/span>3<\/mn>0<\/mn><\/mrow><\/math> and December <\/span>3<\/mn>1<\/mn>.<\/mo><\/mtext>(<\/mi><\/mrow><\/math>FV of $<\/span>1<\/mn>,<\/mo><\/mrow><\/math> PV of $<\/span>1<\/mn>,<\/mo><\/mrow><\/math> FVA of $<\/span>1<\/mn>,<\/mo><\/mrow><\/math> PVA of $<\/span>1<\/mn>,<\/mo><\/mrow><\/math> FVAD of $<\/span>1<\/mn><\/mrow><\/math> and PVAD of $<\/span>1<\/mn>)<\/mi><\/mrow><\/math> <\/div>
Required:<\/span><\/div>
to <\/span>3<\/mn>.<\/mo><\/mrow><\/math> Prepare the journal entries to record the purchase of the bonds by Saxton<\/span>-<\/mo><\/mrow><\/math>Bose on January <\/span>1<\/mn>,<\/mo><\/mtext>2<\/mn>0<\/mn>2<\/mn>1<\/mn>,<\/mo><\/mrow><\/math> interest revenue on June <\/span>3<\/mn>0<\/mn>,<\/mo><\/mtext>2<\/mn>0<\/mn>2<\/mn>1<\/mn><\/mrow><\/math> and interest revenue on December <\/span>3<\/mn>1<\/mn>,<\/mo><\/mtext>2<\/mn>0<\/mn>2<\/mn>1<\/mn><\/mtext>(<\/mi><\/mrow><\/math>at the effective rate<\/span>)<\/mi>.<\/mo><\/mtext>(<\/mi><\/mrow><\/math>Enter your answers in whole dollars. If no entry is required for a transaction<\/span>\/<\/mi><\/mrow><\/math>event<\/span>,<\/mo><\/mrow><\/math> select <\/span>\"<\/mi><\/mrow><\/math>No journal entry required\" in the first account field.<\/span>)<\/mi><\/mrow><\/math> <\/div>
Answer is not complete.<\/span><\/div>
\\<\/mi><\/mrow><\/math>table<\/span>[<\/mi>[<\/mi><\/mrow><\/math>No<\/span>,<\/mo><\/mrow><\/math>Date,General Jo<\/span>,<\/mo>,<\/mo><\/mrow><\/math>Debit,Credit<\/span>]<\/mi>,<\/mo>[<\/mi>1<\/mn>,<\/mo><\/mrow><\/math>January <\/span>0<\/mn>1<\/mn>,<\/mo>2<\/mn>0<\/mn>2<\/mn>1<\/mn>,<\/mo><\/mrow><\/math>Investment in bonds,<\/span>0<\/mn>,<\/mo>,<\/mo>]<\/mi>,<\/mo>[<\/mi>,<\/mo><\/mrow><\/math>Cash,<\/span>0<\/mn>,<\/mo>,<\/mo>]<\/mi>,<\/mo>[<\/mi>2<\/mn>,<\/mo><\/mrow><\/math>June <\/span>3<\/mn>0<\/mn>,<\/mo>2<\/mn>0<\/mn>2<\/mn>1<\/mn>,<\/mo><\/mrow><\/math>Cash,,<\/span>4<\/mn>0<\/mn>0<\/mn>0<\/mn>0<\/mn>0<\/mn>0<\/mn><\/mi>,<\/mo>]<\/mi>,<\/mo>[<\/mi>,<\/mo><\/mrow><\/math>Discount on investment in bonds,<\/span>(<\/mi>0<\/mn>)<\/mi>,<\/mo>,<\/mo>]<\/mi>,<\/mo>[<\/mi>,<\/mo><\/mrow><\/math>Interest revenue,,,<\/span>]<\/mi>,<\/mo>[<\/mi>3<\/mn>,<\/mo><\/mrow><\/math>December <\/span>3<\/mn>1<\/mn>,<\/mo>2<\/mn>0<\/mn>,<\/mo><\/mrow><\/math>Cash,<\/span>0<\/mn>,<\/mo>4<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn>,<\/mo>]<\/mi>,<\/mo>[<\/mi>,<\/mo><\/mrow><\/math>Discount on investment in bonds,<\/span>(<\/mi>0<\/mn>)<\/mi>,<\/mo>,<\/mo>]<\/mi>,<\/mo>[<\/mi>,<\/mo><\/mrow><\/math>Interest revenue,a<\/span>,<\/mo>,<\/mo>]<\/mi>]<\/mi><\/mrow><\/math> <\/div><\/span> <\/div><\/div> \"image", "transcribed_text": "", "related_book": { "title": "Financial Accounting", "isbn": "978-0470477151, 978-0-470-5562, 470556242, 0-470-55624-2, 9780470556245, 978-0470507018", "edition": "7th Edition", "authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/122.jpg", "uri": "\/textbooks\/financial-accounting-7th-edition-122", "see_more_uri": "\/textbooks\/business-organizational-behavior-team-dynamics-3486" }, "free_related_book": { "isbn": "008054858X", "uri": "\/textbooks\/handbook-on-the-physics-and-chemistry-of-rare-earths-optical-spectroscopy-volume-37-1st-edition-9780080548586-111293", "name": "Handbook On The Physics And Chemistry Of Rare Earths Optical Spectroscopy Volume 37", "edition": "1st Edition" }, "question_posted": "2024-06-09 15:27:19", "see_more_questions_link": "\/study-help\/questions\/business-human-resource-management-2020-May-22", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/for-each-of-the-following-service-departments-select-the-activity-base", "description": "For each of the following service departments, select the activity base listed that is most appropriate for charging service expenses to responsibleunits. Service Department Activity Base a. Central...", "stars": 3 }, { "url": "\/consider-two-mutually-exclusive-rd-projects-that-adm-is-considering", "description": "Consider two mutually exclusive R&D projects that ADM is considering. Assume the discount rate for ADM is 15 percent. Project A: Server CPU .13 micron processing project By shrinking the die size to...", "stars": 3 }, { "url": "\/study-help\/psychology\/am-i-going-along-with-what-someone-else-says-without-1982621", "description": "Am I going along with what someone else says without thinking things through?", "stars": 3 }, { "url": "\/lets-be-more-practical-dcf-is-not-the-gospel-managers", "description": "Lets be more practical. DCF is not the gospel. Managers should not become so enchanted with DCF that strategic considerations are overlooked. Do you agree? Explain.", "stars": 3 }, { "url": "\/study-help\/questions\/present-and-future-value-tables-of-1-at-9-are-9873190", "description": "Present and future value tables of 1 at 9% are presented below. PV of $1 FV of $1 PVA of $1 FVAD of $1 FVA of $1 1 0.91743 1.09000 0.91743 1.0900 1.0000 2 0.84168 1.18810 1.75911 2.2781 2.0900 3...", "stars": 3 }, { "url": "\/study-help\/questions\/1-scottie-romisson-scottie-is-a-principal-solicitor-of-romisson-2789567", "description": "1. Scottie Romisson (Scottie) is a principal solicitor of Romisson & Barney Lawyers, a general law practice comprising 3 legal practitioners. The other principal solicitor is Joyce Barney (Joyce)....", "stars": 3 }, { "url": "\/study-help\/financial-accounting-and-reporting\/on-5-january-the-day-of-her-successful-grand-opening-1421856", "description": "On 5 January, the day of her successful grand opening of Hair Affair Pty Ltd, Kate Brown collected \\($2280\\) in cash for hair styling services, and paid \\($400\\) in wages and \\($92\\) for rent. Kate...", "stars": 3 }, { "url": "\/study-help\/introductory-financial-accounting\/for-the-four-unrelated-situations-ad-calculate-the-unknown-amounts-1433805", "description": "For the four unrelated situations, A-D, calculate the unknown amounts indicated by the letters appearing in each column: A B Beginning Assets... Liabilities. $28,000 $12,000 $28,000 $ (d) 18,600...", "stars": 3 }, { "url": "\/study-help\/financial-and-managerial-accounting\/the-following-items-could-appear-on-a-bank-reconciliation-a-1429978", "description": "The following items could appear on a bank reconciliation: a. Outstanding checks b. Deposits in transit c. NSF check d. Bank collection of our note receivable e. Interest earned on bank balance f....", "stars": 3 }, { "url": "\/study-help\/nature-of-mathematics\/draw-a-line-graph-for-each-data-set-in-problems-1259767", "description": "Draw a line graph for each data set in Problems 36-39. Data set D Data set A: The annual wages of employees at a small accounting firm are given in thousands of dollars. 25 16 25 25 14 18 1 2 2 2...", "stars": 3 }, { "url": "\/study-help\/systems-analysis-design\/a-20-ethylene-glycol-solution-is-flowing-through-a-4nom-1294040", "description": "A 20% ethylene glycol solution is flowing through a 4-nom sch 80 commercial steel pipe. The pipe is 350 ft long and is horizontal. The pressure drop through the pipe is 4 psi. The ethylene glycol is...", "stars": 3 }, { "url": "\/study-help\/questions\/when-ford-motor-company-doubled-factory-workers-wages-in-1914-5080868", "description": "When Ford Motor Company doubled factory workers' wages in 1914, employee turnover dropped dramatically without any change in working conditions This is an example of the laws of supply and demand...", "stars": 3 }, { "url": "\/study-help\/understanding-financial-accounting\/north-cpa-is-planning-an-audit-of-the-financial-statements-1556236", "description": "North, CPA, is planning an audit of the financial statements of General Company. In determining the nature, timing, and extent of the auditing procedures, North is considering Generals internal audit...", "stars": 3 }, { "url": "\/study-help\/understanding-financial-accounting\/at-the-end-of-november-2003-the-general-ledger-of-1556242", "description": "At the end of November 2003, the general ledger of Porridge Milling Company showed the following amounts: ASSCIS IS, >. gacccce cag Ee Mes . col aa ronan tee TO OP ee eT ete eR nee, te ee $64,250...", "stars": 3 }, { "url": "\/study-help\/understanding-financial-accounting\/three-college-seniors-with-majors-in-accounting-are-discussing-alternative-1556235", "description": "Three college seniors with majors in accounting are discussing alternative career plans. All three want to enter careers that will help to ensure the integrity of financial reporting. The first wants...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/transcribed-image-text-which-of-the-following-is-false-multiple-2522152", "next": "\/study-help\/questions\/diehl-corporation-uses-an-activity-based-costing-system-with-2522154" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "Exercise 1 4 - 4 ( Static ) Investor; effective interest [", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/exercise-1-4-4-static-investor-effective-2522153" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }} }