7. On January 1, 2018, the College Corporation decides to invest in Small Town bonds. The...

 

  

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7. On January 1, 2018, the College Corporation decides to invest in Small Town bonds. The bonds mature on December 31, 2022, and $20,000 maturity-value bonds sold for face value. College Corporation intends to hold the bonds until maturity. Journalize the transactions related to College Corporation's investment in Small Town bonds during 2018. pay interest of 4% on June 30 and December 31. The market rate of interest was 4% on January 1, 2018, so the Match the key term to the scenario. 1. Available-for-sale debt investments a. Jane owns 53% of Richard's Roses's voting stock. 2. Controlling interest equity investments b. Joe owns a debt security in Bones, Inc. and intends to hold it until maturity. 3. Trading debt investments c. Jeannie owns a debt security in Cricket, Inc. and plans on selling the debt after one year. 4. Held-to-maturity debt investments 5. Significant influence equity investments d. Jimenez owns 5% of Delgado, Inc.'s voting stock but does not have the ability to participate in the decisions of Delgado, Inc. 6. No significant influence equity investments e. Jacob owns 24% of Pay, Inc.s voting stock and has the ability to exert influence over Pay, Inc. f. Jim owns a debt security in Tag, Inc.s and plans on holding the debt for only a week. 7. On January 1, 2018, the College Corporation decides to invest in Small Town bonds. The bonds mature on December 31, 2022, and $20,000 maturity-value bonds sold for face value. College Corporation intends to hold the bonds until maturity. Journalize the transactions related to College Corporation's investment in Small Town bonds during 2018. pay interest of 4% on June 30 and December 31. The market rate of interest was 4% on January 1, 2018, so the Match the key term to the scenario. 1. Available-for-sale debt investments a. Jane owns 53% of Richard's Roses's voting stock. 2. Controlling interest equity investments b. Joe owns a debt security in Bones, Inc. and intends to hold it until maturity. 3. Trading debt investments c. Jeannie owns a debt security in Cricket, Inc. and plans on selling the debt after one year. 4. Held-to-maturity debt investments 5. Significant influence equity investments d. Jimenez owns 5% of Delgado, Inc.'s voting stock but does not have the ability to participate in the decisions of Delgado, Inc. 6. No significant influence equity investments e. Jacob owns 24% of Pay, Inc.s voting stock and has the ability to exert influence over Pay, Inc. f. Jim owns a debt security in Tag, Inc.s and plans on holding the debt for only a week.

Answer rating: 100% (QA)

Matches are listed a 2 b 4 c 1 d 6 e 5 f 3 Detailed explanation is as below a Jane owns 53 of voting Richards Rosess voting stock 2 Controlling intere... View the full answer