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
9966 [12]
4 years ago
5

Kendall Corp. purchased at par value $160,000 of Barker Company's 7% bonds that mature in 10 months. The bonds pay interest semi

annually on June 1 and December 1. Kendall plans to hold the bonds until they mature. The journal entry to record Kendall's purchase of the bonds is:a. debit Short-Term Investments—HTM $160,000; credit Cash, $160,000.
b. debit Cash, $169,333; credit, Short-Term Investments—HTM $169,333.
c. debit Cash, $160,000; credit Short-Term Investments—HTM $160,000.
d. debit Long-Term Investments-HTM $160,000; credit Cash $160,000.
e. debit Cash, $160,000; credit Long-Term Investments-HTM $160,000.
Business
2 answers:
lesantik [10]4 years ago
8 0

Answer:

The correct answer is a. Debit Short-Term Investment for $160,000 and Credit Cash for the Same Amount.

Explanation:

Investments in Money Market Instruments, that is those instruments that mature within one year, are classified as Short-term Investments. Whereas, investments for a period of more than one year are termed as Long-term Investments. Since Kenall Corp. purchased bonds that will mature within one year, so such investment shall be classified under the head of Current Assets.

In-case of interest received semi-annually, Cash will be debited and Finance Income will be credited.

If you have any further queries, feel free to contact me.

Thanks.

Andrews [41]4 years ago
7 0

Answer:

A) debit Short-Term Investments—HTM $160,000; credit Cash, $160,000.

Explanation:

Since Kendall purchased the bonds to hold them until maturity, it must consider them short term investments - hold to maturity. When a company purchases and resells bonds as part of their normal operations they are reported as trading securities in the balance sheet.

Bonds are not considered money market instruments, they are investment instruments (long-term or short-term) or trading securities.  

You might be interested in
Generally, a business should consider insuring against an event when the risk
posledela

Answer:

A

Explanation:

The econimac situatiom will detertoarte further.

8 0
3 years ago
Countries are interconnected today as never before. From eating foods from different countries to singing along to songs perform
Nuetrik [128]
This is tough to answer in 3-5 sentences, and tends to also be a heavy identifier of your possible political leanings.  You'll have to apologize if some of mine leak out in the response, but this is a question we debate hotly more frequently than every 4 years.

In general, international trade can help increase the GDP and overall profits for US-based corporations.  However, if all we do is export, and we don't import, other countries don't look favorably upon that and may heavily tax our goods to counter this.

I believe we do need to be thoughtful about the amounts and kinds of international trade that we engage in.  For example, farming is always a hotly debated issue for international trade, in part because farmers in other countries with a dramatically lower cost of living OR farmers in countries with a favorable currency rate (exchange from their currency to our dollars gives them an advantage) can undercut our farmers here in the US, many of whom are already struggling.

There are also those who are worried that when we import produce from countries that have not outlawed pesticides we know are carcinogenic, for instance, this creates not only a disadvantage for US farmers, but also for consumers who may be concerned about health issues.

As another example of this, many countries outlawed import of US beef during the Mad Cow Epidemic.  We in turn also placed bans on importing beef from the UK.  

These are examples of why it's important to be thoughtful about trade, but there are certainly many others, including decline in production jobs within the US that have left cities like Detroit a ghost town (this was formerly the hub of our automotive industry production).
5 0
3 years ago
Cash received through the sale of long-term investments would be reported in the statement of cash flows as a a.Cash inflow in t
avanturin [10]

Answer:

b.Cash inflow in the investing activities section.

Explanation:

The cash flow statement shows the cash used or provided by the various activities of an entity during a given period. These activities are categorized into operating, investing and financing activities.

Non current asset sale and purchases are accounted for in the investing section of the cash flow statement as an inflow and an outflow of cash respectively.

Hence, Cash received through the sale of long-term investments would be reported as Cash inflow in the investing activities section.

4 0
3 years ago
Glenn lives in florida. he applies for a job with a north carolina company. glenn is told, amazingly, that the job is only open
m_a_m_a [10]

<u>Yes, absolutely.</u>


The Civil Rights Act of 1964, which finished isolation in broad daylight puts and prohibited work segregation based on race, shading, religion, sex or national inception, is viewed as one of the delegated authoritative accomplishments of the social liberties development. First proposed by President John F. Kennedy, it survived solid restriction from southern individuals from Congress and was then marked into law by Kennedy's successor, Lyndon B. Johnson.  

3 0
3 years ago
In order to vote in Texas, you must meet which of the following requirements?
vitfil [10]

Answer:

I think letter A is the right answer

7 0
3 years ago
Other questions:
  • Which of the following has the greatest impact on your cash flow?<br>​
    14·1 answer
  • Auto Parts is considering a merger with Car Parts. Car Parts market-determined beta is 0.9, and the firm currently is financed w
    7·1 answer
  • Maren received 10 NQOs (each option gives her the right to purchase 10 shares of stock for $8 per share) at the time she started
    6·1 answer
  • In the month of March, Crane Salon services 590 clients at an average price of $120. During the month, fixed costs were $21,312
    8·1 answer
  • The Federal Reserve comes to the conclusion that more money must be pumped into the economy in an effort to stimulate economic g
    7·2 answers
  • Which one of the following risks can be progressively eliminated by adding stocks to a portfolio?
    12·1 answer
  • Suppose Cho comes into a large sum of money and decides to lend it out to
    5·1 answer
  • Required information Exercise 6-9A Record transactions using a perpetual system (LO6-5) Skip to question [The following informat
    13·1 answer
  • Michelle Hamilton and Bill Rossi decide to form a partnership. Hamilton invests $35,000 cash and accounts receivable of $30,000
    10·1 answer
  • Common Law is?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!