Prepare Krum Co.’s journal entries to record the following transactions involving its short-term investments in available-for-sale debt securities, all of which occurred during the current year. a. On August 1, paid $50,000 cash to purchase Houtte’s 9%, six-month debt securities ($50,000 principal), dated August 1. b. On October 30, received a check from Houtte for 90 days’ interest on the debt securities in part a.

Q: On July 1, Year 1, Danzer Industries Inc. issued $48,800,000 of 10-year, 9% bonds at a market…

A: Bonds defined as the units of the corporate debt issued through the companies as well as securitized…

Q: On January 1, a company purchased 3%, 20-year corporate bonds for $69,033,776 as an investment. The…

A:

Q: [The following information applies to the questions displayed below.] Mead Incorporated began…

A: Unrealized Gain: An unrealized gain is a prospective profit that exists only on paper as a…

Q: Prepare journal entries to record the following transactions involving short-term debt investments.…

A: Journal entry:   Journal is the book of original entry whereby all the financial transactions are…

Q: Prepare Natura Co.’s journal entries to record the following transactions involving its short-term…

A: The short term investments are the current assets which can be converted into cash within one year.

Q: Required: 1. Prepare the journal entries to record (a) issuance of the bonds by Western and (b)…

A: Bonds: Bonds are the fixed income instrument that provide regular interest income to its holders. It…

Q: On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: On April 1, 2021, Western Communications, Inc., issued 12% bonds, dated March 1, 2021, with face…

A: Solution A journal is used to record the business transation in chronological order. It has two…

Q: Amalgamated General Corporation is a consulting firm that also offers financial services through its…

A: Journal entry:   It is the first step of recording transactions of a company. Before this, no other…

Q: On March 1, 2011, Fast Freight Company sold Rs. 400,000 of its 9 percent, 20-year bonds at 109.9.…

A: Amortization Schedule Date Interest payment Interest Expense Amortization of premium Balance in…

Q: On the first day of its fiscal year, Ebert Company issued $20,000,000 of 5-year, 11% bonds to…

A: Under the Effective interest method, the Bond issue shall be valued at the present value of Bond…

Q: On the first day of the fiscal year, a company issues a $8,900,000, 8%, 5-year bond that pays…

A: Premium on bonds payable:  It occurs when the bonds are issued at a high price than the face value.

Q: Prepare Garzon Company’s journal entries to record the following transactions for the current year.…

A: Interest on July 1 = Par value of bonds x rate of interest x 6/12 = $40,000 x 6% x 6/12 = $1,200

Q: On September 30, Jose’s Jalapenos Inc., issued $1,000,000 of 10-year 9% bonds sated September 30,…

A: Journal entries are prepared to record the financial and non financial transactions of the business.

Q: On April 1, 2021, Western Communications, Inc., issued 12% bonds, dated March 1, 2021, with face…

A: Golden Rules of Accounting : Account Type Debit Credit Personal Account the receiver the giver…

Q: Prepare Garzon Company's journal entries to record the following transactions for the current year.…

A: A journal entry records a business transaction in the accounting system for an organization.

Q: GIFFCO contracted with the investment bank X.M. Retzoff to issue 25 million of short-term paper. The…

A: When debt securities are issued at commission, the fees and commission are deducted from the net…

Q: b. Record the entry for the purchase of the bonds by West Company on July 1. Date Account Name…

A:

Q: On the first day of the fiscal year, a company issues a $4,800,000, 7%, 8-year bond that pays…

A: When bonds are issued at Premium then with each payment part of the premium balance is Amortize with…

Q: On April 1, 2016, Western Communications, Inc., issued 12% bonds, dated March 1, 2016, with face…

A: 1.Prepare the journal entries to record (a) issuance of the bonds by Western and (b) Stillworth’s…

Q: On April 1, 2018, Western Communications, Inc., issued 12% bonds, dated March 1, 2018, with face…

A: 1.

Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

Q: On April 1, 2021, Western Communications, Inc., issued 12% bonds, dated March 1, 2021, with face…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: 1. Prepare the journal entries to record (a) issuance of the bonds by Western and (b) Stillworth’s…

A: Journal enteries on the issuance of Bonds for the organisation Western and stillworth organisation.

Q: Amalgamated General Corporation is a consulting firm that also offers financial services through its…

A: The journal entry regarding the investment has been passed as under: Date Accounts title and…

Q: On January 1 of the current year, a company paid $200,000 cash to purchase 10%, 10-year bonds, with…

A: Journal entry shows the recording of transactions during an accounting year and every transaction…

Q: Prepare Garzon Company's journal entries to record the following transactions for the current year.…

A: Date Particulars Debit Credit 1 Jan Bond Investment $44,000             To Cash   $44,000…

Q: Floyd Limited had the following transactions pertaining to debt investments. Jan.  1, 2020…

A: Interest accrued on December 31, 2020 = investment x rate of interest x year = 50000 x 8% x 1 =…

Q: On July 1 of the current year, West Company purchased for cash, 40, $10,000 bonds of North…

A: SOLUTION-   WORKING- 1- PRESENT VALUE OF PRINCIPLE AT 3% AND 6 PERIODS = 40 *10000*0.8375…

Q: On January 1, Year 1, Tina Company purchased bonds with face value of P4,000,000 for P4,206,000. The…

A: As per IFRS 9, Financial instruments, if any financial asset is held to collect the contractual cash…

Q: The following transactions were completed by Montague Inc., whose fiscal year is the calendar year:…

A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…

Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

A: Bonds: Bonds are securities issued by a company to raise money from the public. It is as good as…

Q: On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: At the beginning of the current year, Candice Company acquired bonds with face amount of P3,000,000…

A:

Q: The following transactions were completed by Montague Inc., whose fiscal year is the calendar year:…

A: Since, only the 2nd and 3rd requirement are mentioned they are answered. Bonds: Bonds are long-term…

Q: The Wilfred Company sold 8% bonds, dated January 1, with a face amount of $90 million on January 1,…

A: Issue Price of the bonds = Present value of principal + Present value of interest payments = face…

Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

A: Bonds: It is also known as a fixed-income security, which is a debt instrument created for the…

Q: On April 1, 2021, Western Communications, Inc., issued 12% bonds, dated March 1, 2021, with face…

A: Journal Entry: It is the act  of  recording  business transaction(either economic or non-economic)…

Q: Adele Corp., a wholesaler of music equipment, issued $22,000,000 of 20-year, 7% callable bonds on…

A: Answer - Calculations :  Interest Exp - 22000000*7%*1/2 = 770000

Q: loyd Limited had the following transactions pertaining to debt investments. Jan.  1, 2020 Purchased…

A: Interest  = Bond x Interest rate x Time

Q: Record the entry for the purchase of the bonds by West Company on July 1.

A: Computation of bond price  Present value of bond = Cash inflow for each period x PVIFA ( i, t) +…

Q: Prepare Natura Co.’s journal entries to record the following transactions involving its short-term…

A:

Q: Assume that you are the accountant of one of the investors of the bonds. The investor purchased P10,…

A: Date Accounts title Debit (P) Credit (P) 1 Investment in Bonds P10,000,000        Cash…

Q: The following information relates to the debt securities investments of Wildcat Company. 1.   On…

A: a. Prepare any journal entries you consider necessary, including year-end entries (December 31),…

Q: On July 1, Year 1, Danzer Industries Inc. issued $24,000,000 of 20-year, 11% bonds at a market…

A: Bonds are those units of the corporate debt that is issued through the companies as well as…

Q: On July 1, Year 1, Danzer Industries Inc. issued $47,500,000 of 10-year, 10% bonds at a market…

A: The bond is considered as an instrument which is issued, when the loan is made to the borrower by…

Q: Mead Incorporated began operations in Year 1. Following is a series of transactions and events…

A: journal entry of above transaction are as follows

Q: n July 1 of the current year, West Company purchased for cash, 8, $10,000 bonds of North Corporation…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Prepare Hertog Company’s journal entries to record the following transactions for the current year.…

A: Journal Entries: Date Account title and explanation Debit Credit May. 7 Kraft Bonds - Trading…