Hannahdavy5434
24.03.2021 •
Business
Lance Brothers Enterprises acquired $755,000 of 4% bonds, dated July 1, on July 1, 2021, as a long-term investment. Management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 5% for bonds of similar risk and maturity. Lance Brothers paid $675,000 for the investment in bonds and will receive interest semiannually on June 30 and December 31. Prepare the journal entries (a) to record Lance Brothers' investment in the bonds on July 1, 2021, and (b) to record interest on December 31, 2021, at the effective (market) rate. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 2 > Record Lance Brothers' investment in the bonds on July 1, 2021. Record interest on December 31, 2021, at the effective (market) rate.
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Ответ:
A. July 1, 2021
Dr Investment in bonds755,000
Cr Discount on bondinvestment80,000
Cr Cash 675,000
B. December 31, 2021
Dr Cash 25,100
Cr Discount on bond investment 1,775
Cr Interest revenue16,875
Explanation:
A. Preparation of the journal entries to record Lance Brothers' investment in the bonds on July 1, 2021,
July 1, 2021
Dr Investment in bonds755,000
Cr Discount on bondinvestment80,000
(755,00-675,000)
Cr Cash 675,000
(To record Lance Brothers' investment in the bonds)
B. Preparation of the journal entries to record interest on December 31, 2021, at the effective (market) rate
December 31, 2021
Dr Cash 25,100
(4.00%/2 × $755,000)
Cr Discount on bond investment 1,775
(25,100-16,875)
Cr Interest revenue16,875
(5%2 × $675,000)
(To record interest at the effective)
Ответ:
Performance management
Explanation: Performance management refers to the process in which the management compares the actual performance of an employee, department or the process with the set standards.
The scope of improvement is communicated to the employees after the comparison is done.
Thus, we can conclude that HR of the company needs to improve performance management function as the employees did not get their report and are not able to correct their mistakes.