On February 1, Hansen Company purchased $102,000 of 9%, 15-year Knight Company bonds at their face amount plus one month’s accrued interest. The bonds pay interest on January 1 and July 1. On October 1, Hansen Company sold $37,200 of the Knight Company bonds acquired on February 1, plus three months’ accrued interest. On December 31, three months’ interest was accrued for the remaining bonds. Determine the interest earned by Hansen Company on Knight Company bonds for the year. Do not round interim calculations. If required, round final answer to the nearest dollar.

On January 1, Elias Corporation issued 7% bonds with a face value of $78,000. The bonds are sold for $75,660. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 10 years from now. Elías records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is Oa. $455 Ob. $5,694 Oc. $5,460 Od. $2,340

Bonds Payable Journal Entries; Straight-Line Interest Amortization On December 31, Brown Company issued $400,000 of 20-year, eight percent bonds payable for $331,364, yielding an effective interest rate of ten percent. Interest is payable semiannually on June 30 and December 31. Prepare journal entries to reflect (a) the issuance of the bonds, (b) the semiannual interest payment and discount amortization (straight-line interest method) on June 30, and (c) the semiannual interest payment and discount amortization on December 31.  Round answers to the nearest dollar.   General Journal   Date Description Debit Credit (a) 12/31/Y1 Cash Answer Answer     Answer Answer Answer     Answer Answer Answer     To record issuance of bonds at a discount.     (b) 06/30/Y2 Answer Answer Answer     Answer Answer Answer     Cash Answer Answer     To record semiannual payment and discount amortization.     (c) 12/31/Y2 Answer Answer Answer     Answer Answer Answer     Cash…

Bond (held-to-maturity) investments The following bond investment transactions were completed by Starks Company: Jan. 31. Purchased $90,000 government bonds as a held-to-maturity investment at 100 plus accrued interest for 1 month. The bonds pay 7% annual interest on July 1 and January 1. July 1. Received semiannual interest on bond investment. Aug. 30. Sold $24,000 bonds at 99 plus accrued interest for 2 months. a. Journalize the entries for the preceding transactions. If an amount box does not require an entry, leave it blank. Jan. 31 Investments-Government Bonds July 1 Interest Receivable Cash Cash Interest Receivable Interest Revenue Aug. 30 Cash Loss on Sale of Investments Interest Revenue Investments-Government Bonds 90,000 525 3,150 24,240 X 285 X 90,525 525 2,625 525 X 24,000