Prepare Natura Co.’s journal entries to record the following transactions involving its short-term investments in held-to-maturity debt securities, all of which occurred during the current year. a. On June 15, paid $120,000 cash to purchase Remed’s 90-day short-term debt securities ($120,000 principal), dated June 15, that pay 5% interest. b. On September 16, received a check from Remed in payment of the principal and 90 days' interest on the debt securities purchased in transaction a. (Use 360 days in a year. Do not round your intermediate calculations.)

The answer has been attached below.

Explanation:

A journal entry is the record of the business transactions in an accounting books of a business. It is the first step in accounting cycle. The journal details all the financial transactions of a business. The accounts are either recorded in the credit or the debit side of accountings.

The calculation has been attached. Kindly note that the interest was gotten thus:

= 120,000 × 5% × 90/360

= 120,000 × 0.05 × 0.25

= 1500

The journal entry for the whole transactions has been attached.

The $1000 saved would be $1100 after one year and $1,210 after two years

Explanation:

$1000 saved by the consumer in year 1 would equal a higher amount which is the future value when interest rate is 10%,in other words the future value is usually computed with the below formula:

FV=PV*(1+r)^N

PV is the amount saved  which is $1000

r is the lending or borrowing rate of 10%

N is the time horizon for the investment which 1 year

FV=$1000*(1+10%)^1

FV=$1100

if the amount is reinvested in year 2 , the future value at the end of year 2 is as follows:

FV=$1100*(1+10%)^1

FV=$1,210