1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kirill [66]
3 years ago
6

The following bond investment transactions were completed during a recent year by Starks Company: Year 1 Jan. 31 Purchased 75, $

1,000 government bonds at 100 plus accrued interest of $375 (one month). The bonds pay 6% annual interest on July 1 and January 1. July 1 Received semiannual interest on bond investment. Aug. 30 Sold 35, $1,000 bonds at 98 plus $350 accrued interest (two months).
a. Journalize the entries for these transactions.
b. Provide the December 31, Year 1, adjusting journal entry for semiannual interest earned on the bonds.
Business
1 answer:
Nadusha1986 [10]3 years ago
3 0

Answer and Explanation:

The Journal entries is shown below:-

Jan 31

Investment in Govt Bonds Dr, $75,000

Interest Receivable Dr, $375  

      To Cash 75,375

(Being cash is recorded)

July 31

Cash Dr $2,250  

      To Interest Receivable $375

       To Interest Income 1,875

($75000 × 6% × 5 ÷ 12)

(Being interest on bond is recorded)

Aug 30

Cash Dr, $34,650

Loss on Sale of Bonds Dr, $700

($35,000 - 980 × $35)                

     To Investment in Govt Bonds $35,000

      To Interest Income $350

(Being loss on sale is recorded)

Dec 31

Interest Receivable Dr,  $1,200  

To Interest Income $1,200

(40 × $1,000 × 6% × 6 ÷ 12)

(Being interest on bonds is recorded)

You might be interested in
Which person would most benefit from homeowners insurance?
atroni [7]

The person would most benefit from homeowners insurance is D) Fran lives in an assisted living facility.

<h3>What is insurance?</h3>

Insurance can be described as the way of  managing your risk when someone subscribe to  insurance,  then the  protection against unexpected financial losses is been gotten.

Hence, The person would most benefit from homeowners insurance is D) Fran lives in an assisted living facility.

Therefore , option D is correct.

Learn more about insurance at:

brainly.com/question/25855858

#SPJ1

4 0
2 years ago
A city council has requested a household survey be conducted in a suburban area of their city. the area is broken into many dist
Simora [160]

The answer is<u> "2. cluster sampling."</u>


Cluster sampling alludes to a kind of sampling technique . With cluster sampling, the scientist partitions the populace into isolated gatherings, called groups. At that point, a basic random sample of clusters is chosen from the populace. The analyst leads his investigation on information from the inspected clusters.  

Contrasted with simple random sampling and stratified sampling, cluster sampling has points of interest and disservices. For instance, given equivalent example sizes, group testing normally gives less accuracy than either simple random sampling or stratified sampling. Then again, if travel costs between clusters are high, cluster sampling  might be more practical than alternate strategies.

8 0
3 years ago
Viva, Inc. bought machine X for $18,000 two years ago. The machine had no residual value and had an estimated useful life of 10
FinnZ [79.3K]

Answer:

$14,400

Explanation:

The computation of the current book value of the machine is shown below:-

Value of the Machine two Years ago = $ 18,000

Annual Depreciation = Cost - Salvage Value ÷ Useful Life

= ($18,000 - 0) ÷ 10

= $ 1,800  

Depreciation for two years = $1,800 × 2

= $ 3,600  

The Current Book Value = Cost - Depreciation for two years

= $18,000 - $3,600

= $14,400

4 0
3 years ago
IF YOU WANT TO BE A VET READ THIS!!!
damaskus [11]
Yes! I am in going into 10th grade and am so excited to do vet school! I take a vet class and a marine biology class every week! I already started looking into colleges like UCDavis and the university of Colorado! I have birds fish and dogs as well!
6 0
3 years ago
You are considering a project which will provide annual cash inflows of $4,500, $5,700, and $8,000 at the end of each year for t
liraira [26]

Answer:

Total PV= $15,103.49

Explanation:

Giving the following information:

Cf1= 4,500

Cf2= 5,700

Cf3= 8,000

Discount rate= 9%

<u>To calculate the present value, we need to use the following formula on each cash flow:</u>

PV= FV/(1+i)^n

Cf1= 4,500/(1.09)= $4,128.44

Cf2= 5,700/1.09^2= $4,797.58

Cf3= 8,000/1.09^3= $6,177.47

Total PV= $15,103.49

3 0
3 years ago
Other questions:
  • What is budget variance?
    8·1 answer
  • A company has the following annual budget data: Beginning finished goods inventory 53,000units Sales 83,000units Ending finished
    5·1 answer
  • Read the following scenario: A contributing member of a project is out sick. Identify the possible risks to the project. Busines
    12·2 answers
  • In two to three sentences, describe how making minimum payments on credit card balances increases the total cost.
    9·1 answer
  • If a company adds 60 new workstations at a cost of $100,000 each and also spends $20 million for addition in its camera/drone as
    5·1 answer
  • Capital structures vary among firms in the United States and around the world. Relationships, attitudes, tax codes, and accounti
    9·1 answer
  • Salim sells fax machines that come in Standard and Enhanced models. The Standard model sells for $325 and the Enhanced model sel
    13·1 answer
  • Suppose you purchase five put contracts on Testaburger Co. The strike price is $45, and the premium is $3. If, at expiration, th
    12·1 answer
  • If customer satisfaction does not always lead to customer loyalty, firms may need to focus additional effort on _____ strategies
    8·1 answer
  • What message is this price tag telling shoppers? (other than it is on sale)
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!