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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.  

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Answer: $19000

Explanation:

From the question, we are informed that Vaughn Manufacturing's allowance for uncollectible accounts was $190000 at the end of 2020 and $178000 at the end of 2019 and that for the year ended December 31, 2020, Vaughn reported bad debt expense of $31000 in its income statement.

The amount that Vaughn debited to the appropriate account in 2020 to write off actual bad debts will be:

= $31000 - ($190000 - $178000)

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2 years ago
The following are exogenous (not directly affected by income): G = 11 I = 4 X = M = 0 The consumption function is: C = k + cY, w
nikitadnepr [17]

Answer: the answer is 90.0

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Answer:

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