Question

In: Accounting

On September 1, 2019, the entity bought the bonds belonging to the private sector with a...

On September 1, 2019, the entity bought the bonds belonging to the private sector with a nominal value (par value) of $400,000 with an annual interest payment of 12% through the bank. The related bonds were sold on February 1, 2020 with a bank equivalent of $424,000 .

a- Please show the journal entries required on 31 December 2019.

b- Show the journal entries required on February 1, 2020.

c- If these bonds were sold on February 1, 2020 for $418.000 show the journal entries.

Solutions

Expert Solution

Here Journal Entries for February 1, 2020 are made on assumption that the Sale Value (price) does not include interest revenue on bonds upto date of sale.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

On September 1, 2019, the entity bought the bonds belonging to the private sector with a...
On September 1, 2019, the entity bought the bonds belonging to the private sector with a nominal value (par value) of $400,000 with an annual interest payment of 12% through the bank. The related bonds were sold on February 1, 2020 with a bank equivalent of $424,000 . a- Please show the journal entries required on 31 December 2019. b- Show the journal entries required on February 1, 2020. c- If these bonds were sold on February 1, 2020 for...
(Private Sector and Caribbean Development) The private sector has been referred to as the “engine of...
(Private Sector and Caribbean Development) The private sector has been referred to as the “engine of growth” for Caribbean economies; implying that this sector is expected to play a leading role in generating output and employment. Do you see a role for government in this environment? If so, please state your reasons and give specific examples of areas of government involvement. Provide References
Pine Corporation issued $500,000 in ten-year, 8% bonds on September 1, 2019. Interest is to be...
Pine Corporation issued $500,000 in ten-year, 8% bonds on September 1, 2019. Interest is to be paid semi-annually on May 1 and November 1. The bonds were sold to yield 6% effective annual interest. Pine Corporation has a calendar year-end and follows IFRS. Instructions: Prepare the entries required for these bonds at • December 31, 2019(year end) • March 1, 2020 • September 1, 2020 when the interest was paid and the entire issue was retired early for $575,000 plus...
should Accounting in the public sector be the same as in the private sector
should Accounting in the public sector be the same as in the private sector
what are the examples of nudges in the private sector and in the public sector?
what are the examples of nudges in the private sector and in the public sector?
Question 1 The growth of public-sector and private-sector programs in a market economy increased the need...
Question 1 The growth of public-sector and private-sector programs in a market economy increased the need for program management, including the functions of planning, administration, legislation, and regulation True False Question 2 The purpose of a health service is to positively affect a person's health—its maintenance, its improvement, or its recovery. True False Question 3 Receiving health services is always proven to be effective, and positive outcomes are always likely Question 3 options: True False Question 4 Private health insurance...
A private Health Clinic manager will buy the flu vaccine. There are 3 vaccines belonging to...
A private Health Clinic manager will buy the flu vaccine. There are 3 vaccines belonging to separate companies in the market and the manager wants to choose the most effective of them. He conducted a research for this and applied all the vaccines and found the results as in the table below. Is there a difference between these 3 vaccines in terms of Protecting or not Protecting against Flu disease? Alpha = 0.05 error level? vaccine types of companies protecting...
2.) Pure public goods are those supplied by the public sector and private goods are those supplied by the private sector.
  2.) Pure public goods are those supplied by the public sector and private goods are those supplied by the private sector. 3.) Nonrival goods may be provided by the private sector, but only if they are excludable.
a. On January 1, 20X1, Stella Entity purchases bonds issued by Gragas Entity for $900,000. Stella...
a. On January 1, 20X1, Stella Entity purchases bonds issued by Gragas Entity for $900,000. Stella Entity will receive an annual coupon payment of $75,000 and an additional $1,000,000 when the bond expires. On January 1, 20X3, Stella Entity is short on cash and needs to purchase new equipment to replace equipment that was destroyed in a factory fire. Stella Entity agrees with Cash Entity to sell all of its rights to future payments on the bond for $875,000. The...
Unions represent under 7% of the private sector work force, perhaps 1/3d of public sector employees,...
Unions represent under 7% of the private sector work force, perhaps 1/3d of public sector employees, down from a peak of union representation in the 1950’s.   Some argue that unions are necessary, and the decline of unionization is a root cause of the economic decline in the US middle class for several decades.   Have unions outlived their usefulness in the US economy, should be shut down as a right of employees to bargain with their employers?   Or do unions have...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT