{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-28T06:35:28-04:00", "answer_date": "2024-06-28 06:35:28", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4253561", "url": "\/study-help\/questions\/suppose-hector-wilson-hw-buys-800000-of-amexon-bonds-at-4253561", "question_creation_date_js": "2024-06-28T06:35:28-04:00", "question_creation_date": "Jun 28, 2024 06:35 AM", "meta_title": "[Solved] Suppose Hector Wilson (HW) buys $800,000 | SolutionInn", "meta_description": "Answer of - Suppose Hector Wilson (HW) buys $800,000 of Amexon bonds at a price of 106. The Amexon bonds pay cash interest at the | SolutionInn", "meta_keywords": "hector,wilson,hw,buys,$800,000,amexon,bonds,price,106,pay,cash,interest", "question_title_h1": "Suppose Hector Wilson (HW) buys $800,000 of Amexon bonds at a price of 106. The Amexon bonds pay cash interest at the annual rate of", "question_title": "Suppose Hector Wilson (HW) buys $800,000 of Amexon bonds at a price", "question_title_for_js_snippet": "Suppose Hector Wilson (HW) buys $800,000 of Amexon bonds at a price of 106 The Amexon bonds pay cash interest at the annual rate of 7 and mature at the end of 5 years Journalize the following on HWs books a)Purchase of the bond investment on January 2, 2016 HW expects to hold the investment to maturity b)Receipt of annual cash interest on December 31, 2016 c)Amortization of the bonds on December 31, 2016 Use the effective interest of 6 5 to amortize the investment d)Collection of the investments face value at the maturity date on January 2, 2021 (Assume the receipt of 2020 interest and amortization of bonds for 2020 have already been recorded, so ignore these entries)", "question_description": "

Suppose Hector Wilson (HW) buys $800,000 of Amexon bonds at a price of 106. The Amexon bonds pay cash interest at the annual rate of 7% and mature at the end of 5 years. Journalize the following on HWs books: <\/p>

<\/p>

  1. a)Purchase of the bond investment on January 2, 2016. HW expects to hold the investment to maturity <\/li>
  2. b)Receipt of annual cash interest on December 31, 2016 <\/li>
  3. c)Amortization of the bonds on December 31, 2016. Use the effective <\/li>
  4. interest of 6.5% to amortize the investment <\/li>
  5. d)Collection of the investments face value at the maturity date on January 2, <\/li>
  6. 2021. (Assume the receipt of 2020 interest and amortization of bonds for 2020 have already been recorded, so ignore these entries)<\/li> <\/ol>", "transcribed_text": "", "related_book": { "title": "Elementary Statistics", "isbn": "0321836960, 978-0321836960", "edition": "12th Edition", "authors": "Mario F. Triola", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/450.jpg", "uri": "\/textbooks\/elementary-statistics-12th-edition-450", "see_more_uri": "" }, "free_related_book": { "isbn": "1593376863", "uri": "\/textbooks\/a-beginners-guide-to-day-trading-online-2nd-edition-978-1593376864-277174", "name": "A Beginners Guide To Day Trading Online", "edition": "2nd Edition" }, "question_posted": "2024-06-28 06:35:28", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/imperial-electronics-ltd-is-a-publicly-owned-company-with-100000", "description": "Imperial Electronics Ltd. is a publicly owned company with 100,000 common shares outstanding. 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