On January 1, 2023, Liu Corporation paid $255,016 to acquire bonds of Singh Investment Corp with...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2023, Liu Corporation paid $255,016 to acquire bonds of Singh Investment Corp with a par value of $253,000. The annual contract rate on the bonds is 7.5% and interest is paid semiannually on June 30 and December 31. The bonds mature after three years. The market rate of interest was 7.2%. Liu Corporation intends to hold the bonds until maturity. Required: 1. Prepare an amortization schedule for the investment showing only 2023. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Enter all the amounts as positive values.) Cash Period Interest Period Ending Premium Amort. Interest Received Income Unamortized Premium Carrying Value Jan. 1/23 255,016 0 0 $ 0 $ 255,016 June 30/23 $ Dec. 31/23 253,000 $ 253,000 9,181 $ 9,488 $ (307) $ SA 254,709 9,169 9,488 (319) 254,390 2-a. Prepare Liu's entries to record the purchase of the bonds. (Do not round intermediate calculations. Round your final answers to nearest dollar amount.) View transaction list Journal entry worksheet < 1 Record the Purchase of a 3-year, 7.5%, $253,000 bond. Note: Enter debits before credits. Date Jan 01 General Journal Debit Credit Investment - Singh bond 255,016 Cash 255,016 D 2-b. Prepare Liu's entries to record the receipt of the first two interest payments. (Do not round intermediate calculations. Round your final answers to nearest dollar amount.) View transaction list Journal entry worksheet < 1 2 Record the collection of interest on bond. Note: Enter debits before credits. General Journal Debit Credit 9,488 Date Jun 30 Cash Investment - Singh bond 307 D On January 1, 2023, Liu Corporation paid $255,016 to acquire bonds of Singh Investment Corp with a par value of $253,000. The annual contract rate on the bonds is 7.5% and interest is paid semiannually on June 30 and December 31. The bonds mature after three years. The market rate of interest was 7.2%. Liu Corporation intends to hold the bonds until maturity. Required: 1. Prepare an amortization schedule for the investment showing only 2023. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Enter all the amounts as positive values.) Cash Period Interest Period Ending Premium Amort. Interest Received Income Unamortized Premium Carrying Value Jan. 1/23 255,016 0 0 $ 0 $ 255,016 June 30/23 $ Dec. 31/23 253,000 $ 253,000 9,181 $ 9,488 $ (307) $ SA 254,709 9,169 9,488 (319) 254,390 2-a. Prepare Liu's entries to record the purchase of the bonds. (Do not round intermediate calculations. Round your final answers to nearest dollar amount.) View transaction list Journal entry worksheet < 1 Record the Purchase of a 3-year, 7.5%, $253,000 bond. Note: Enter debits before credits. Date Jan 01 General Journal Debit Credit Investment - Singh bond 255,016 Cash 255,016 D 2-b. Prepare Liu's entries to record the receipt of the first two interest payments. (Do not round intermediate calculations. Round your final answers to nearest dollar amount.) View transaction list Journal entry worksheet < 1 2 Record the collection of interest on bond. Note: Enter debits before credits. General Journal Debit Credit 9,488 Date Jun 30 Cash Investment - Singh bond 307 D
Expert Answer:
Related Book For
Fundamental Accounting Principles Volume 2
ISBN: 9781260881332
17th Canadian Edition
Authors: Kermit D. Larson, Heidi Dieckmann, John Harris
Posted Date:
Students also viewed these finance questions
-
Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the table, and using a 365-day year, calculate Average Day's Purchases. Round the answers to two...
-
The Easterwood Corporation Capital Budgeting Example. The Easterwood Corporation, a firm in the 3 4 % marginal tax bracket with a 1 5 % required rate of return or cost of capital, is considering a...
-
On January 1, 2023, Liu Corporation paid $241,960 to acquire bonds of Singh Investment Corp with a par value of $240,000. The annual contract rate on the bonds is 6% and interest is paid semiannually...
-
Repeat Prob. 37 using singularity functions exclusively (including reactions). Repeat Prob. 37, For the beam shown, find the reactions at the supports and plot the shear-force and bending-moment...
-
Research CEO pay on the Internet (try www.aflcio.org/paywatch and Graef Crystals column at www.bloomberg.com/columns). Identify persons you believe to be the most overpaid and underpaid and explain...
-
A professional football player's contract is sold at a gain after it has been held for two years. What issues should the team consider in determining the nature of this gain?
-
What is meant by a value-added statement? To what extent is it likely to provide information over and above that already available in the income statement?
-
The nancial statements of the Lance Armstrong Foundation (see Table 128) contain the following note titled Promises to Give: Unconditional promises to give were as follows at December 31: The...
-
QUESTION 3 (20 MARKS) (a) Explain TWO (2) factors of depreciation. (6 marks) (b) Goldenfox Sdn Bhd. purchased a machinery for RM50,000 on 5 January 2019. Calculate the depreciation charged for 2019,...
-
Please fill out the following. manufacturine conts and ether expeme data are an follom. (a) 1 answer
-
A business is planning to issue 10%, 6-year bonds with a par value of $525,000 on January 1 of the current year. The bonds pay semiannual interest on June 30 and December 31. Assuming the market rate...
-
Pick a stock and collect its annual stock prices and dividend payments for the past 3 years (2018-2020).Given the stock prices and dividends, compute 3 annual holding period returns (HPRs).Then, use...
-
ats COURSES GROUPS RESOURCES GRADE REPORT 00 Personal Finance S1: Personal Finance / M Weekly Assignments Asignaciones semanales Vests Standards Risk Management (standards 15-16) PF16 Conduct...
-
A board game gives you 4 colors to choose from: blue, red, white, and yellow. To start the game, your opponent chooses 4 colored game pieces and puts them in any order they wish. Colors are allowed...
-
How do genomic conflicts, such as those between selfish genetic elements and their host genomes, drive evolutionary innovation and adaptation, and what are the evolutionary implications of conflicts...
-
Q6) (10 marks) Boris wants to retire and figures that today he could live on $20000 per year. Unfortunately, he is 20 years away from retirement and inflation is running at 1.00% (effective annual...
-
If the joint cost function for two products is C(x, y) = xy2 + 1 dollars (a) Find the marginal cost (function) with respect to x. (b) Find the marginal cost with respect to y.
-
How many months does it take to save $200,000.00 based on the information provided in this problem?---
-
What is the amount oi the credit to employee city income tax payable?
-
Milat is the total yearly gross pay for all employees?
Study smarter with the SolutionInn App