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3 years ago

5

A company issues $50 million of bonds at par on January 1, 2018. The bonds pay 10% interest semi-annually on 12/31 and 6/30 and

mature in 20 years. The journal entry when the bonds are sold is:

1 answer:

marysya [2.9K]3 years ago

4 0

Answer: Please see explanation for answer

Explanation:

Journal entry to record sale of bonds

Account titles Debit Credit

Cash $50,000,000

Bonds Payable $50,000,000

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Different compounding periods, are used for different types of investments. In order to properly compare investments or loans wi

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Answer:

Explanation:

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3 years ago

Jed Castanza transfers $90,000 of cash to the JN partnership for a 60 percent interest in the JN partnership. Ned transfers a bu

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Answer:

Their basis will be 90,000 for Mr Castanza

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3 years ago

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3 years ago

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faust18 [17]

The statement, investor perception on the risk of bonds will raise their desired return is true.

The higher an investment's risk, the greater its potential returns should be. By contrast, a very safe and low-risk investment should generally offer low returns. So, this investor perception will raise the desired return of the risk of bonds.

Generally, the higher the potential return of an investment, the higher the risk. Thus, there is no guarantee that you will actually get a higher return by accepting more risk. In this matter diversification is useful.

Hence, you can minimize the risk by making sure the company's bond you own is not a high risk company with a high probability of paying back.

To learn more about risk of bonds here:

brainly.com/question/14850768

#SPJ4

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