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OverLord2011 [107]

3 years ago

7

The following transactions for Wolfe Corporation relate to long-term bonds classified as available-for-sale: 2018 Jan. 1 Purchas

ed $50,000 Lake Corporation 10% bonds for $50,000. July 1 Received interest on Lake bonds. Dec. 31 Accrued interest on Lake bonds. Dec. 31 Market value of the bonds $55,000, prepare the adjusting entry to record bonds at market value. 2019 Jan. 1 Received interest on Lake bonds. Jan. 1 Sold $25,000 Lake bonds for $26,650. July 1 Received interest on Lake bonds. a) Journalize the transactions.

1 answer:

erik [133]3 years ago

7 0

Answer:

2018 Jan. 1 Purchased $50,000 Lake Corporation 10% bonds for $50,000.

Dr 10% bonds available for sale 50,000
Cr Cash 50,000

available for sale

July 1 Received interest on Lake bonds.

Dr Cash 2,500
Cr Interest revenue on 10% bonds available for sale 2,500

Dec. 31 Accrued interest on Lake bonds.

Dr Interest receivable 10% bonds available for sale 2,500
Cr Interest revenue 10% bonds available for sale 2,500

Dec. 31 Market value of the bonds $55,000, prepare the adjusting entry to record bonds at market value. 2019

Dr 10% bonds available for sale 5,000
Cr Unrealized gain - other comprehensive income 5,000

Jan. 1 Received interest on Lake bonds.

Dr Cash 2,500
Cr Interest receivable on 10% bonds available for sale 2,500

Jan. 1 Sold $25,000 Lake bonds for $26,650.

Dr Cash 26,650
Dr Unrealized gain - other comprehensive income 2,500
Cr 10% bonds available for sale 27,500
Cr Realized gain on 10% bonds available for sale 1,650

July 1 Received interest on Lake bonds.

Dr Cash 1,250
Cr Interest receivable on 10% bonds available for sale 1,250

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The x-ccordinate of your plot is still the number of years the exmployees have worked for the company.

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⇒ $(40,log_{10}1,500,000)=(40,6.18)$

Summarizing, the points to plot are:

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<u><em>B. Will the plot of these three points be straight enough?</em></u>

To find whether the plot is straight enoguh, you may either plot them, make a regression, or, since they are only three points, you can whether the change of rate of the points is constant.

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<u>Change of rate of the second and the third points, r</u>:

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4 years ago

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Answer: Option (d) is correct.

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= 2,500 × $0.15 each

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Selling price = $0.36 each

sale value = pieces sold × Selling price

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sale value = pieces sold × Selling price

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$Percentage\ of\ sale\ in\ Group\ 2=\frac{1,980}{2,715}\times 100$

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