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Kazeer [188]
3 years ago
7

Carow Corporation purchased on January 1, 2020, as a held-to-maturity investment, $60,000 of the 8%, 5-year bonds of Harrison, I

nc. for $65,118, which provides a 6% return. The bonds pay interest semiannually. Prepare Carow's journal entries for (a) the purchase of the investment, and (b) the receipt of semiannual interest and premium amortization. Assume effective-interest amortization is used.
Business
1 answer:
tigry1 [53]3 years ago
6 0

Answer:

Entries are given below

Explanation:

Requirement A.

On January 1, 2020 Carrow purchased held to maturity investment, $60,000 of the 8% 5year bonds of Harrison, Inc for $65,118

Entry                                                DEBIT   CREDIT

Held-to-maturity securities            $65,118

cash                                                                $65,118

Requirement B.

The receipt of semiannual interest and premium amortization

Entry                                                DEBIT   CREDIT

cash (60,000 x 8% x 6/12)             $2,400  

held to maturity sercurities                            $446

interest revenue(65,118 x.6% x6/12)             $1,954

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2 years ago
Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and COGS At the beginning of
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Answer and Explanation:

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Answer:

net income cash-basis     8,000

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Explanation:

cash revenues                32,000

salaries expense         <u>  (24,000)  </u>

net income cash-basis     8,000

<u>sales for the period:</u>

beginning AR + sales - collected = ending AR

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sales = 34,500

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3 0
2 years ago
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Answer:

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