If Intervale Railway invests $100,000 in 5% bonds at face value that the company intends to hold

Fantastic news! We've Found the answer you've been seeking!

Question:

If Intervale Railway invests $100,000 in 5% bonds at face value that the company intends to hold until the bond maturity date, the interest revenue recognized when each semiannual interest payment is received would be recorded as a

a. credit to Cash, $2,500.

b. credit to Interest Revenue, $2,500.

c. debit to Held-to-Maturity Debt Investments, $2,500.

d. debit to Dividend Revenue, $2,500.

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0324312140

16th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

Posted Date: Jun 09, 2021 04:30 PM

See More Questions

The company intends to issue 20-year bonds with a face value of $1,000. The bonds carry a coupon rate of 10%, and interest is paid semiannually. On the issue date, the market interest rate for bonds...
The company has the following three loans payable scheduled to be repaid in February of next year. A. The company intends to repay Loan A, for $9,600, when it comes due in February. In the following...
the company intends to sell each unit for 219 and has estimated that it will have to pay 45 per unit for raw materials one unit of raw material is needed for each unit of finished product
(a) Find an equation of the normal line to the ellipse at the point (4, 2). (b) Use a graphing utility to graph the ellipse and the normal line. (c) At what other point does the normal line intersect...
Consult Paragraphs13-21 of PCAOB Auditing Standard No. 15.What is meant by a restructuring reserve? As an auditor, what type of evidence would you want to examine to determine whether a company was...
1. Go to finance.yahoo.com and download the ending monthly stock prices for Colgate-Palmolive for the last 60 months. Use the adjusted closing price, which adjusts for dividend payments and stock...
You hold a long position in a call and a short position in a put, written on the same non-dividend-paying stock share, but having different strikes and maturities, as reported in the table below...
The budget for the Baldwin Equipment, Inc. job in P9-1 consisted of the following amounts: Partners salary and overhead . . . . . . . . . . . . . $6,300 Associates salary and overhead . . . . . . . ....
You are a Japanese investor. The current spot rate of JPY/USD is 100. In one period, the exchange rate is expected to go up to JPY/USD 110 or JPY/USD 90. The JPY risk free interest rate is 8%. There...
In a survey, adults were asked to answer yes or no to the question Do you regularly watch the evening TV news? Some of the results from the survey are detailed in the Venn diagram opposite. One adult...
Martinez Inc reported a net income of 2.5 million in 2011 Depreciation for the year was 160000 accounts receivable decreased 350000 and accounts payable decreased 280000 Compute net cash provided by...
2. Develop test cases to satisfy statement testing 1 importjava.util.*; 2 class Palindrome 3 { 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20} publicstaticvoid main (Stringargs []) String original,...
A town's population has been growing linearly. In 2004 the population was 6,200. By 2009 the population had grown to 8,100. Assume this trend continues. a. Find a linear model to represent the...
Use both definitions of L(A) to show that "abbcd" is in the language of this NDFR: d
Melanie pAYS QUALIFIED EDUACCTIONAL EXPENSES TO A QUALIFIED EDUCATION INSTITUTION IN THE AMOUNT OF 5,000. ASUMING SHE IS FULLY ELEGIBLE TO THE AMERICAN OPPORTUNITY TAX CREDIT, WHA IS THE AMOUNT OF...
In which area of the Reports center can you create charts to visualize a company's financial data? show with example.
Choose a social marketing campaign that is working to bring awareness regarding a health condition or problem. Briefly describe the four P's (product, price, place, and promotion) of the marketing...
The nitrogen atoms in N2 participate in multiple bonding, whereas those in hydrazine, N2H4, do not. (a) Draw Lewis structures for both molecules. (b) What is the hybridization of the nitrogen atoms...
Examine the partial balance sheet of Altria Group shown below and answer the following questions. 1. Current assets for Altria Group (parent company of Philip Morris) totaled $25,901 (in millions) at...
Taxable income and income tax rates for 20062011 for the company have been as follows: Make the journal entry necessary to record any net operating loss (NOL) carryforward created in 2011. The...
At December 31, 2007, Weber Companys noncurrent operating asset accounts had the following balances: Category Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 190,000...
Explain the difference between the credit risk and the market risk in a swap.
Explain two ways a fixed-for-fixed currency swap can be valued.
A home security company located in Minneapolis, Minnesota, develops a summer ad campaign with the slogan When you leave for vacation, burglars leave for work. According to the city of Minneapolis,...

If Intervale Railway invests $100,000 in 5% bonds at face value that the company intends to hold

Question:

Expert Answer:

A bcredit to Interest Revenue 2500 Explanation Heldtomat... View the full answer

Intermediate Accounting

Students also viewed these algorithms questions