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Scorpion4ik [409]
3 years ago
14

On January 1, 2019, Lynch Company acquired 13% bonds with a face value of $50,000. The bonds pay interest on June 30 and Decembe

r 31 and mature on December 31, 2021. Lynch paid $51,229.35, a price that yields a 12% effective annual interest rate. Required: 1. Record the purchase of the bonds. 2. Prepare an investment interest income and premium amortization schedule using the effective interest method. 3. Record the receipts of interest on June 30, 2019, and December 31, 2021.
Business
1 answer:
My name is Ann [436]3 years ago
5 0

Answer:

1) CR Cash/Bank $51,229.35 , DR Bonds Receivable Account $50,000 and DR Premium on Bond Payable Account.

(2) Please see attached for Investment Interest Income Amortization Schedule

(3) Recording of Interest Received

June 30, 2019

CR Income statement (Interest Received) -$3,000, CR Premium on Bond Receivable $250

December 31, 2021

CR Income Statement (Interest Received) -$2915.44

Explanation:

(1) CR Cash/Bank $51,229.35 , DR Bonds Receivable Account $50,000 and DR Premium on Bond Payable Account.

(2) Please see attached for Investment Interest Income Amortization Schedule

(3) Recording of Interest Received

June 30, 2019

CR Income statement (Interest Received) -$3,000, CR Premium on Bond Receivable $250

December 31, 2021

CR Income Statement (Interest Received) -$2915.44

Download xlsx
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A supplier of instrument gauge clusters uses a kanban system to control material flow. The gauge cluster housings are transporte
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3 years ago
Consider the portfolio choice theory of money demand. how do you think the demand for money will be affected during a hyperinfla
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Answer:

The demand for money decreases sharply.

Explanation:

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3 years ago
Read 2 more answers
Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Assets of $210.761 million Total Common Stock of $6.
xeze [42]

Answer:

the  Digby Corporation's total liabilities is $156.92 million

Explanation:

The computation of the total liabilities is given below:

Total Liabilities is

= Total Asset - (Total Common Stock + Retained Earnings)

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The same should be relevant

5 0
3 years ago
Max, an employee at HiFi LLC, is responsible for performing the job analysis process in her organization. She is currently plann
kramer

Answer:

The correct answer is the option C: Conducting the job analysis.

Explanation:

To begin with, the term of <em>"Job Analysis"</em> refers to a method used in the organizations with the purpose of generating job descriptions and specifications in order to establish a better communication inside the organization and also to know better who the best candidates will be for future jobs. Therefore that this analysis focus on the correct comprehension from the analyst regarding the job that is being under analysis. When the analysis has began the person in charge of it will have to planned carafully the way that she will get the information for later transform it into the job description and that is why that once that the planning has been done the person needs to conduct the job analysis in order to obtain the results expect that are the proper description of the job and all of its specifications for future employees.

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3 years ago
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Ksivusya [100]

Answer:Flexible

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