Cardinal Paz Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, andno credits, with the following descriptions.Feb. 1, 2025April 1July 1(a)Sharapova Company common stock, $100 par, 200 sharesU.S. government bonds, 11%, due April 1, 2035, interest payable April 1 and October 1, 110 bonds of$1,000 par eachMcGrath Company 12% bonds, par $50,000, dated March 1, 2025, purchased at 104 plus accruedinterest, interest payable annually on March 1, due March 1, 2045Account Titles and ExplanationDebt InvestmentsPrepare entries necessary to classify the amounts into proper accounts, assuming that the debt securities are classified asavailable-for-sale. Sharapova has 200,000 shares outstanding. (List all debit entries before credit entries. Credit account titles areautomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles andenter o for the amounts.)Debit$37,400Credit110,00054,000

Available for sale securities are securities purchased with the intent to sell before their…

Cardinal Paz Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. Feb 1 2025 Sharapova Company.common stock $100par 200 shares $37.100

Cardinal Paz Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. Feb 1 2025 Sharapova Company.common stock $100par 200 shares $37.100

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 9E: Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp....

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Sage Corp. carries an account in its general ledger called investments, which contained debits for investment purchases, and no credits, with the following descriptions. Feb, 1, 2025 Sharapova Company common stock, $90 par, 180 shares $35,820 April 1 US government bonds 10%, due April 1, 2035, interest payable April 1 and October 1. 108bonds of $1,000 par each 108,000 July 1 McGrath Compnay 12% bonds, par $50,000, dated March 1, 2025, purchased at 104 plus accrued interest, interest payable annually on March 1, 2045 $54,540 Prepare entries neccessary to classify the amounts into proper accounts, assuming that the debt securities are classified as available for sale. Sharapova 200,000 shares outstanding
The following investment account was taken from the general ledger of One Dream Investment Company: Debt Investments - Fulfilled Dream 6% bonds (2,000,000 face value, due December 31, 2027) Date PR Debit Credit Balance January2, 2022 VR VR P1,812,300 P1,812,300 June 30, 2022 CRJ 60,000 1,752,300 Dec. 31, 2022 CRJ 60,000 1,692,300 Dec. 31, 2022 195,000 1,497,300 In the course of your examination, you obtained the following information: Interest checks were received on June 30 and December 31 and were credited to the investment account. One dream sold P200,000 of its investment on December 31, 2022 for P195,000. Effective interest rate on this investment, as computed by your audit staff, is 8%. (4% - semi annual) One Dream included this investment in a portfolio that is held to collect and for sale. The fair value at December 31, 2022 and 2023 is 97.5 and 105, respectively. How much is the gain or…
ndigo Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. Feb. 1, 2014 Sharp Company common stock, $110 par, 200 shares $38,300 April 1 U.S. government bonds, 12%, due April 1, 2024, interest payable April 1 and October 1,96 bonds of $1,000 par each 96,000 July 1 Grath Company 12% bonds, par $47,300, dated March 1, 2014, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2034 51,084 The Fair Values of the investments on December 31, 2020 were Sharapove Company common stock $28,800 U.S government bonds 130,800 McGarth Company Bonds 52,900 What entry if any would you reccoments ( round your answers to 0 decimal places e.g 2,500) The Us. Gov bonds were sold on July for 116,700 plus accured interest. give the proper entry
MSI Inc -(ALL ENTRIES FOR MSI ONLY) KEY for Accounting Component Assets = A Liabilities = L Stockholders' Equity = SE Accounting Component On July 1st 2019, MSI Inc issued $800,000, 3%, 10 year bonds at 103. The bonds pay interest annually. Prepare the Debit (DR) Credit (CR) Account 3 journal entry to record the issuance of the bonds. What is the total cost of borrowing? TOTAL COST OF BORROWING = On January 1st 2020, MSI Inc issues $500,000 4%, 6 year bonds at face value. Prepare the entry to record the issuance of the bonds. On December 31st 2020, MSI Inc does an adjusting entry to record the accrual of interest for #4 above. On January 1st, 2020, MSI pays the accrued bond interest and calls the bonds at 101 (refer to #4 above). Record the payment of interest and redemption of the bonds.
Assume that on January 1, First Union Co. purchases for cash a $400,000 of Medford City 5% bond at 100 plus accrued interest of $4,500 as an investment on January 1. What accounts would be debited for the $4,500 in the journal entry to record the investment? DATE DESCRIPTION PREF DEBIT CREDIT Jan. 1 (?) $400,000 (?) 4,500 (?) 404,500 Investment in Medford City Bonds Interest receivable Cash Interest revenue O000
On 1/1/2019 BY company purchased 4000 bonds of Arab Bank the par value per bonds OMR45, bonds bearing interest 12% is payable each July. 1 & Dec 31. The bonds mature Dec. 2019. On 31/12/2019, the company sold the bonds at OMR 152200. On 31/12/2019 the company should record cash: Select one: a. OMR152000 b. OMR163000 c. OMR180000 O d. None of the options
Journalize the entries to record the following selected bond investment transactions for Southwest Bank: Apr. 1 Purchased $400,000 of Daytona Beach 4.5% bonds at 100 plus accrued interest of $4,500. July 1 Received the first semiannual interest. Sept. 1 Sold $250,000 of the bonds at 97, plus accrued interest of $1,875. If an amount box does not require an entry, leave it blank. 1. 2. 3.
Assume that on January 1, First Union Co. purchases for cash a $400,000 of Medford City 5% bond at 100 plus accrued interest of $4,500 as an investment on January What accounts would be debited for the $400,000 in the journal entry to record the investment? DATE DESCRIPTION PREF DEBIT CREDIT Jan. 1 (?) $400,000 (?) 4,500 (?) 404,500 Investment in Medford City Bonds Interest receivable Cash Bonds Payable O000
In auditing the books of Ruby Company as of December 31, 2022, before the accounts were closed, you find the investment account balance: INVESTMENT IN PEARL 9% BONDS (DUE DATE JUNE 1, 2027) Date Item Debit Credit Balance Jan. 20 Bonds, P500,000 par acquired at 102 plus accrued interest 517,500 517,500 Mar. 01 Proceeds from sale of bonds, P100,000 face and accrued interest 106,000 411,500 June 1 Interest Received 18,000 393,500 Nov. 01 Amount received on call of bonds, P100,000 face, at 101 and accrued interest 104,750 288,750 Dec. 1 Interest Received 13,500 275,250 During the course of your audit procedures: The company uses the nearest month method in the computation of interest. The bonds were originally dated December 1, 2021, but the bonds were purchased on January 20, 2022. The investments were held for trading purposes The interest are receivable semi-annually, every June 1 and December 1. Pearl 9% bonds were quoted at par as of December 31, 2022.…
Majestic Corporation holds an investment in Cromwell bonds that pays interest eachOctober 31. Majestic’s balance sheet at December 31 should reporta. interest expense.b. interest revenue.c. interest payable.d. interest receivable.
Journalize the entries to record the following selected bond investment transactions for Southwest Bank: Apr. 1 Purchased $400,000 of Daytona Beach 4.5% bonds at 100 plus accrued interest of $4,500. July 1 Received the first semiannual interest. Sept. 1 Sold $250,000 of the bonds at 97, plus accrued interest of $1,875. If an amount box does not require an entry, leave it blank. 1. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 2. fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 fill in the blank 17 fill in the blank 18 3. fill in the blank 20 fill in the blank 21 fill in the blank 23 fill in the blank 24 fill in the blank 26 fill in the blank 27
kindly answer part e, f and g The following transactions are taken from the records of the Elton Corporation. Prepare journal entries for the transactions for the following: a. Bonds payable with a par value of $800,000, carrying a stated interest rate of 9% payable semiannually on March 1 and September 1, were issued on June 1, 2014, at 102.5 plus accrued interest. The bonds are dated March 1, 2014 and mature on March 1, 2024. b. September 1 interest payment is made. (Bond premium amortization is recorded only at year end.) c. Year-end (December 31) accrued interest on bonds payable is recorded and the bond premium is amortized using the straight-line method. d. March 1 interest payment is made. e. Bonds with a par value of $350,000 are purchased at 101 plus accrued interest on August 1, 2015, and retired. (Bond premium amortization is recorded only at year end.) f. September 1 interest payment is made. g. Year-end (December 31) accrued interest on bonds payable is recorded and the…