On January 1, 2019, Kelly Corporation acquired bonds with a face value of $500,000 for $483,841.79, a price that yields a 10% effective annual interest rate. The bonds carry a 9% stated rate of interest, pay interest semiannually on June 30 and December 31, are due December 31, 2022, and are being held to maturity.
1. Prepare journal entries to record the purchase of the bonds and the first two interest receipts using the straight-line method of amortization. If required, round your answers to the nearest cent. For compound entries, if an amount box does not require an entry, leave it blank.
June 30 entry
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Ответ:
Debt Securities Investment 493,841.79 debit
Discount on D-S Investment 6,158.21 debit
Cash 500,000 credit
--to record bonds purchase--
Cash 22,500 debit
Discount on D-S Investment 769.78 credit
Interest revenue 21,730.22 credit
--to record first interest collection--
Interest receivables 22,500 debit
Discount on D-S Investment 769.78 credit
Interest revenue 21,730.22 credit
--to record second interest collection--
Explanation:
cost 493,841.79
face value 500,000.00
discount: 6,158.21
We divide this over the total payment left:
6,158.21 / 8 = 769,78
interest proceeds
500,000 x 9% / 2 = 22,500.00
amorization (769.78)
Interest revenue 21,730.22
Ответ:
Explanation:
Face value = 500000
Discount = -16158.21
Fair Value = 483841.79
Amortization Schedule
year Amount Interest repay Closing
6 months 483841.79 0 22500 461341.79
6 months 461341.79 48384.2 22500 487225.96
investment in bond 483841.79
Cash 483841.79
To record the investment at amortized cost.
Cash 22500
Investment 22500
to record the semi annual interest payment
Cash 22500
Investment 25884.2
Interest Income 48384.2
Ответ:
D
Step-by-step explanation:
so total travel by x bikers = 50 multiplied by x = 50x
According to the question
50x = 560
dividing 560 miles by 50 miles per biker give ya 11.2 or approximately 12 bikers.