EmmyLou Company purchased 70 Harris Company 12%, 10-year, $1,000 bonds on January 1, 2010, for $73,000. EmmyLou
Question:
EmmyLou Company purchased 70 Harris Company 12%, 10-year, $1,000 bonds on January 1, 2010, for $73,000. EmmyLou Company also had to pay $500 of broker’s fees. The bonds pay interest semiannually on July 1 and January 1. On January 1, 2011, after receipt of interest, EmmyLou Company sold 40 of the bonds for $40,100.
Instructions
Prepare the journal entries to record the transactions described above.
Step by Step Answer:
Debt Investments 73500 Cash 73500 July 1 2010 Cash 70000 X 12 X ...View the full answer
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Accounting questions
-
10. Consider a 10-year coupon bond with 10% annual coupons. The current YTM is 7%. Suppose you buy the bond today and hold the bond till maturity. What is the rate of return from this investment if...
-
Prepare journal entries to record the transactions in CP7-1 assuming that a periodic inventory system is used, with inventory costs being determined on a FIFO basis.
-
Prepare journal entries to record the transactions in PA7-1 assuming that a periodic inventory system is used, with inventory costs being determined on a FIFO basis.
-
"Assault on college campuses can no longer remain just a female issue, and universities nationwide must prepare males for the same protections it provides their female counterparts in college Title...
-
Use single-value grouping. a. Determine a frequency distribution. b. Obtain a relative-frequency distribution. c. Construct a frequency histogram based on your result from part (a). d. Construct a...
-
The amount of customers entering the StopOne variety store per day is normally distributed with a mean of 100 and a standard deviation of15. About what percentage of the observations lie between 85...
-
Consider the simple linear regression model fit to the ozone data in Problem 2.13. Problem 2.13 Davidson ("Update on Ozone Trends in California's South Coast Air Basin," Air and Waste, 43, 226, 1993)...
-
You are asked to do a study of shelters for abused and battered women to determine the necessary capacity in your city to provide housing for most of these women. After recording data for a whole...
-
The December 31, 2021, adjusted trial balance of Business Solutions (reflecting its transactions from October through December of 2021) follows. Number 101 196 Account Title Cash Accounts receivable...
-
Your event lighting company is thinking about investing in a bank of portable lights for sporting events. Your accounting department just brought you the following pro-forma accounting projections...
-
Foren Corporation had the following transactions pertaining to debt investments. Jan. 1 Purchased 50 8%, $1,000 Choate Co. bonds for $50,000 cash plus brokerage fees of $900. Interest is payable...
-
Dossett Company had the following transactions pertaining to stock investments. Feb. 1 Purchased 600 shares of Goetz common stock (2%) for $6,000 cash, plus brokerage fees of $200. July 1 Received...
-
BSI has sold to Cambodias Angkor Wat Entertainment Inc.(CAWE) INR 10 million licensing rights to 10 of its recent films. Payment is due in six months. BSI can simply finance its exports by drawing on...
-
What types of slide titles, or headlines, are typically used in report decks?
-
What is the difference between primary research and secondary research? Describe a business communication situation in which you would want to use both types of research to support a message.
-
Explain the difference between the primary audience and the secondary audience.
-
Explain the difference between social proof and scarcity.
-
What are four types of business messages that typically require persuasion?
-
Encapsulation is also known as (a) information hiding (b) interface management (c) polymorphism (d) aggregation
-
Complete the equations for the following equilibria and calculate Keq where the Keq expression includes [HO]. Be sure to enter Keq in proper scientific notation. (a) ammonia (acting as a base) reacts...
-
Let R be the region enclosed by y = x 2 + 2, y = (x 2) 2 and the axes x = 0 and y = 0. Compute the volume V obtained by rotating R about the x-axis. Express V as a sum of two integrals.
-
Shown below are the job cost related accounts for the law firm of Barnes, King, andMorton and their manufacturing-company equivalents: Cost data for the month of March follow.1. Purchased supplies on...
-
Bell Company??s fiscal year ends on June 30. The following accounts are found in its job order cost accounting system for the first month of the new fiscal year. Other data:1. On July 1, two jobs...
-
In the course of routine checking of all journal entries prior to preparing yearend reports, Diane Riser discovered several strange entries. She recalled that the presidents son Ron had come in to...
-
In February 2 0 1 6 , hackers targeted the central bank of Bangladesh and exploited vulnerabilities in SWIFT, the global financial system s main electronic payment messaging system, trying to steal...
-
In the Heckscher-Ohlin model, as trade occurs in a capital-abundant country, increased imports will force domestic import- competing firms to decrease prices and production. Labor and capital will...
-
Why has Gatorade been so successful in the sports drink market?
Study smarter with the SolutionInn App