Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter C, Problem 4E
Summary Introduction
Concept Introduction:
An investment is classified as held to maturity if it is made for long term and intended to be held till the maturity of the investment. A held to maturity investment in bonds is accounted using the amortization method.
To prepare: the
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Prepare Natura Company'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 $180,000 cash to purchase Remed's 90-day short-term debt securities ($180,000 principal),
dated June 15, that pay 7% 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.
Note: Use 360 days in a year. Do not round your intermediate calculations.
View transaction list
Journal entry worksheet
<
1
2
On June 15, paid $180,000 cash to purchase Remed's 90-day short-term debt
securities ($180,000 principal), dated June 15, that pay 7% interest.
Note: Enter debits before credits.
Transaction
a.
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
Prepare Natura Company'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 $114,000 cash to purchase Remed's 90-day short-term debt securities ($114,000 principal), dated June 15, that pay
9% 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.)
View transaction list
Journal entry worksheet
1 2
On June 15, paid $114,000 cash to purchase Remed's 90-day short-term debt
securities ($114,000 principal), dated June 15, that pay 9% interest.
Note: Enter debits before credits.
Transaction
a.
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
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 $168,000 cash to purchase Remed’s 90-day short-term debt securities ($168,000 principal), dated June 15, that pay 10% 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.)
Chapter C Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. C - Under what two conditions should investments be...Ch. C - Prob. 2DQCh. C - Prob. 3DQCh. C - Identify the three classes of debt investments and...Ch. C - Prob. 5DQCh. C - Prob. 6DQCh. C - Prob. 7DQCh. C - Prob. 8DQCh. C - Prob. 9DQCh. C - Prob. 10DQ
Ch. C - Prob. 11DQCh. C - Prob. 12DQCh. C - Prob. 13DQCh. C - Prob. 14DQCh. C - Which of the following statements a through g are...Ch. C - Prob. 2QSCh. C - Prob. 3QSCh. C - Prob. 4QSCh. C - Prob. 5QSCh. C - Prob. 6QSCh. C - Journ Co. purchased short-term investments in...Ch. C - Prob. 8QSCh. C - Prob. 9QSCh. C - Prob. 10QSCh. C - Prob. 11QSCh. C - Prob. 12QSCh. C - Complete the following descriptions by filling in...Ch. C - Complete the following descriptions by filling in...Ch. C - Prob. 15QSCh. C - Prob. 17QSCh. C - Complete the following descriptions by filling in...Ch. C - Prob. 2ECh. C - Prob. 4ECh. C - Prob. 5ECh. C - Prob. 6ECh. C - Prob. 7ECh. C - Use the following information of Prescrip Co. to...Ch. C - Prob. 9ECh. C - Prob. 10ECh. C - Prob. 12ECh. C - Complete the following descriptions by filling in...Ch. C - Prob. 14ECh. C - Prob. 1PSACh. C - Prob. 3PSACh. C - Prob. 4PSACh. C - Prob. 5PSACh. C - Prob. 6PSACh. C - Prob. 1PSBCh. C - Prob. 3PSBCh. C - Prob. 4PSBCh. C - Prob. 5PSBCh. C - Prob. 6PSBCh. C - Prob. CSPCh. C - Prob. 1GLPCh. C - Prob. 2GLPCh. C - Prob. 1FSACh. C - Prob. 2FSACh. C - Prob. 3FSACh. C - Prob. 2BTN
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