Please give complete answer with explanation: Corporation G purchases a $120,000 par,10% bond at 104 on...

Please give complete answer with explanation:

Corporation G purchases a $120,000 par,10% bond at 104 on January 1, 19A. The interest is payable annually on December 31 and the bond matures in 5 years.

a. Prepare the required entries for January 1 and December 31

b. Determine the net interest revenue for the year

c. Show how this bond would be presented on the balance sheet on Dec 31, 19A

Expert Solution

a.

Date	Account Titles	Debit	Credit
Jan. 1	Investment in Bonds	$ 120,000
	Premium on Bonds	$ 4,800		=120000*4%
	Cash		$ 124,800

Dec. 31	Cash	$ 12,000		=120000*10%
	Interest Revenue		$ 11,040
	Premium on Bonds		$ 960	=4800/5

b. Interest Revenue = $11040

c.

Assets
Investments
Investment in Bonds	$ 120,000
Add : Premium on Bonds	$ 3,840
Carrying Value	$ 123,840

ekkarill92 answered 1 year ago

Please give answer and explanation ! Consider the following reaction: CH4 (g) + 2O2 (g)----------} CO2(g)...

Please give answer and explanation ! Consider the following reaction: CH4 (g) + 2O2 (g)----------} CO2(g) + 2H20(g) ^Hr= -890 kj a) is heat absorbed or evolved in the course of the reaction? b) Calculate the amount of heat trasnferred when 45g of CH4 is decomposed by this reaction at constant pressure. c) For the given sample of CH4 the enthalpy change on reaction is 66.8 kj. How many grams of H2O are produced? d) what is the value of...

Please answer these questions and give an explanation as to the answer: Question 1 What ratio...

Please answer these questions and give an explanation as to the answer: Question 1 What ratio measures the underlying risk of a company? Question 2 Gaston Co. reports the following cash activities for the year: Receive cash from customers $100,000 Pay cash to purchase building $90,000 Receive cash from issuance of stock $50,000 Pay cash for employee salaries $40,000 Pay cash for dividend to stockholders $20,000 Receive cash from sale of land $70,000 Pay cash for repayment of borrowing $80,000...

A bond currently sells for 104% of par value and has a yield to maturity of...

A bond currently sells for 104% of par value and has a yield to maturity of 8.22 percent. The bond natures in 5 years and pays interest semi annually. What is the coupon rate on the bond?

On January 1, Hamblin Corporation had 120,000 shares of $10 par value common stock outstanding. On...

On January 1, Hamblin Corporation had 120,000 shares of $10 par value common stock outstanding. On March 17 the company declared a 10% stock dividend to stockholders of record on March 20. Market value of the stock was $13 per share on March 17. The entry to record the transaction of March 17 would include a Group of answer choices debit to Common Stock Dividends Distributable for $120,000. credit to Stock Dividends for $36,000. credit to Cash for $156,000. credit...

Please give a detailed explanation, not just the answer. Thanks in advance! Use the data in...

Please give a detailed explanation, not just the answer. Thanks in advance! Use the data in the given table to fill in the missing coefficients. Round your answers to 3 decimal places. x y 2 13.524 7.5 19.125 13 23.463 18.5 28.937 24 33.6 29.5 37.779 35 43.065 y=_____x +_______

Please answer as soon as possible. Explanation is not required. Just the step is fine. Give...

Please answer as soon as possible. Explanation is not required. Just the step is fine. Give me a step-by-step procedure to troubleshoot a computer as part of a network can be used to verify internet connectivity. Use words like "ping," "connectivity," "Layer 3," and "DNS," and "gateway."

Zale Corporation has outstanding 120,000 shares of 10 percent, $80 par-value cumulative preferred stock and 300,000...

Zale Corporation has outstanding 120,000 shares of 10 percent, $80 par-value cumulative preferred stock and 300,000 shares of no-par-value common stock. 1.1 During 2016, the corporation paid dividends of $720,000. What amount will be paid on each share of preferred stock? (Round your answer to 2 decimal places.) 1.2 During 2016, the corporation paid dividends of $720,000. What amount will be paid on each share of common stock? 2.1 During 2017, the corporation distributed dividends of $1,410,000. What...

An investor purchases a 10-year, 6% annual coupon payment bond at $90 per $100 of par...

An investor purchases a 10-year, 6% annual coupon payment bond at $90 per $100 of par value. The investor receives a series of 10 coupon payments of $6 (per 100 of par value) for a total of $60, plus the redemption of principal ($100) at maturity. In addition to collecting the coupon interest and the principal, the investor has the opportunity to reinvest the cash flows. 1) If the coupon payments are reinvested at 8%, per 100 of par value,...

Why naphthalene is less aromatic than benzene? ** Please give a detailed explanation for this answer....

Why naphthalene is less aromatic than benzene? ** Please give a detailed explanation for this answer. thank you!

Please give a good explanation and a comprehensive answer. Where in the asphalt layer, would you...

Please give a good explanation and a comprehensive answer. Where in the asphalt layer, would you expect to find a tension crack forming(initiating) and why?

Question