mcq

On January 1, 2021. Canarie Ltd. purchased $237,000 of 12%, 10-year bonds at face value (100) with the intention of selling the bonds early the next year. Interest is received semi-annually on July 1 and January 1. At December 31, 2021, which is the company's fiscal year end, the bonds were trading in the market at 95 (this means 95% of maturity value). ) (a) Your answer has been saved. See score details after the due date. Using the fair value through profit or loss model prepare the journal entry to record the purchase of the bonds on January 1. (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.) Debit Credit Date Account Titles and Explanation 310650 Jan. 1 Trading Investments 310650 Prepare the journal entry to record the receipt of the interest on July 1. (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.) Date Account Titles and Explanation Debit Credit July 1 A company just starting a business purchased three inventory items at the following prices: March 2, $225; March 7. $235; and March 15. $255. If the company sold one unit for $305 on March 10 and one unit for $325 on March 20 and uses the average cost formula in a perpetual inventory system, what is the cost of ending inventory? $238.33 $255.00 $325.00 $242.50