Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Rawl Company issues a 10-year, $4,000,000 bond on 01/01/2019 with a premium of $100,000. The coupon rate of the bond is 10%, and interest is
Rawl Company issues a 10-year, $4,000,000 bond on 01/01/2019 with a premium of $100,000. The coupon rate of the bond is 10%, and interest is to be paid to the bondholders semiannually on 06/30 and 12/31. The journal entry that Rawl should make on 12/31/2019 with regard to this bond is Debit cash $4,100,000, credit premium on bonds payable $100,000, credit bonds payable $4,000,000 Debit cash $5,000, debit interest expense $195,000, credit bonds payable $200,000. Debit premium on bonds payable $5,000, debit interest expense $195,000, credit bonds payable $200,000. Debit premium on bonds payable $5,000, debit interest expense $195,000, credit cash $200,000 When a note is secured by an asset of the corporation, it is called a(n) O mortgage. O asset note. callable note. serial bond. Rough Rider Corporation owns $60,000 of the common stock of Pistola, Inc. This investment has been properly classified by Rough Rider as a trading security. The $60,000 ownership of Pistola stock should be classified as a current asset, and any unrealized gain/loss on the Pistola stock investment should be reported in the stockholders' equity section of Rough Rider's balance sheet. should be classified as a current asset, and any unrealized gain/loss on the Pistola stock investment should be reported on Rough Rider's income statement for the period. should be classified as a current asset, and any unrealized gain/loss on the Pistola stock investment should be reported on Pistola's income statement for the period. should be reported as a non-current asset on Rough Rider's balance sheet
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started