Pharoah Corporation had the following transactions pertaining to debt investments.1Purchased 60 Leeds Co. 8% bonds (each with a face value of $1,000) for $60,000 cash. Interest is payable annually on January1,20222Accrued interest on Leeds Co. bonds on December 31, 2022.3.Received interest on Leeds Co. bonds on January 1, 2023.4. Sold 50 Leeds Co. bonds for $52,500 on January 1, 2023.Journalize the transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount isentered. Do not Indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journalentries in the order presented in the problem.)No.Date23.Account Titles and ExplanationDebitCred

1. Purchased Leeds Co. bonds for cashPharoah Corporation purchased 60 Leeds Co. bonds, each with a…

Answered: Pharoah Corporation had the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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4. On July 1, 2024, Howe Co. issued 300 of its 10%, $1000 face value bonds at 99 plus accrued interest. The bonds are dated on April 1, 2024 and mature on April 1 2032. Interest is payable semi-annually on April 1 and October 1 of each year. What amount of total cash did Howe receive on July 1, 2024? (A) $289,500 (B) $297,000 (C) $300,000 (D) $304,500 (E) None of the above.
On January 1, 2016, Phoenix Corporation issued 10-year $200,000 bonds with a 6% stated rate of interest at 103. Phoenix Corporation pays the interest annually on December 31 and uses the straight-line amortization method. What is the carrying value of the bonds that Phoenix Corporation will report on its balance sheet at the end of 2017? A. $200,000 B. $206,000 c. $204,800 d. $207,200
On October 1, 2021, ABC Corporation issued, at 99 excluding accrued interest, 3,000 of its 8% 1,000 bonds The bonds are dated January 1, 2021 and mature on January 1, 2031, and pay interest on July 1 and January 1. The bonds were issued to yield 10%. Based on your audit, the only entry made by the company for the year 2021 was: Debit: Cash 3,030,000 Credit: Bonds payable 3,030,000 How much should the carrying value of the bond be adjusted to reflect its correct balance at December 31, 2021? (If the adjustment is a decrease, put a negative (-) sign before the numerical answer; if the adjustment is an increase, leave the numerical figure as positive)
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David corporation issued $100,000, 5- year bonds at 97 on January 1,2016. In December 31,2030 the bonds matured. The payment of the bonds at maturity would be s on the statement of cash flows as a cash outflow of -100,000 in the investing activities section -100,000 in the financing activities section -97,000 in the financing activities section -97,000 in the investing activities section
Culver Corporation issued 2,800 9%, 7-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1. what is the journal entry to record the sale of these bonds on January 1, 2022. what is the adjusting journal entry on December 31, 2022, to record interest expense. what is the journal entry on January 1, 2023, to record interest paid.
None
A company purchased $100,000 of 5%, 2-year bonds on July 1, 2024. The bonds were purchased at face amount. What is the amount of interest revenue as of December 31, 2024? Multiple Choice A.$2,500 B.$5,000 C.$10,000 D.None of these answer choices are correct.
Crane Company issued $740,000, 10-year, 5% bonds at 103. Prepare the journal entry to record the sale of these bonds on January 1, 2022. Date Account Titles and Explanation Debit Credit Jan. 1 enter an account title to record the sale of these bonds on January 1, 2017enter an account title to record the sale of these bonds on January 1, 2017
On August 1, Year 1, Bee Company purchased $1,500,000 of Ant Company 10-year, 6% bonds, dated July 1, at 100 plus accrued interest. On March 1, Year 2, Bee sold half of the bonds for $782,500 plus accrued interest. Journalize the following transactions: a. Purchase of bonds on August 1, Year 1. b. Receipt of first semiannual interest payment on December 31, Year 1. c. The sale of the bonds on March 1, Year 2. If an amount box does not require an entry, leave it blank.
Ruben Company purchased $100,000 of Evans Company bonds at 100. Ruben later sold the bonds for $104,500 plus $500 in accrued interest. The journal entry for the sale of the bonds would be debit Cash, $104,500, and Interest Receivable, $500; credit Investments-Evans Company Bonds, $100,000, Gain on Sale of Investments, $4,500, and Interest Revenue, $500 Odebit Cash, $105,000; credit Investments Evans Company Bonds, $100,000, Gain on Sale of Investments, $4,500, and Interest Revenue, $500 debit Cash, $105,000; credit Investments-Evans Company Bonds, $100,000, and Gain on Sale of Investments, $5,000 debit Cash, $105,000; credit Investments-Evans Company Bonds, $104,500, and Interest Revenue, $500

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