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28 Sep 2019
For each of thebonds listed below, record the three requested journalentries. Dates and descriptions are notrequired. The Dorchester Companyinvested $100,000 in 5-year bonds. The bonds were purchased at parand bear interest at a rate of 8% per annum, payablesemiannually. (a) Prepare the journal entry to record the initialinvestment. (b) Prepare the journal entry that Dorchester wouldrecord on each interest date. (c) Prepare the journal entry that Dorchester wouldrecord at maturity of the bonds. a Investment in bond 100,000 Cash 100,000 b Cash 4,000 Interest income 4,000 c Cash 100,000 Investment in bond 100,000 The Dorchester Companyinvested $100,000 of face amount of 5-year bonds. The bonds werepurchased at 103 and bear interest at a stated rate of 8% perannum, payable semiannually. (a) Prepare the journal entry to record the initialinvestment. (b) Prepare the journal entry that Dorchester wouldrecord on each interest date. (c) Prepare the journal entry that Dorchester wouldrecord at maturity of the bonds. a b c The Dorchester Companyinvested $100,000 of face amount of 4-year bonds. The bonds werepurchased at 98 and bear interest at a stated rate of 8% per annum,payable semiannually. (a) Prepare the journal entry to record the initialinvestment. (b) Prepare the journal entry that Dorchester wouldrecord on each interest date. (c) Prepare the journal entry that Dorchester wouldrecord at maturity of the bonds.
| For each of thebonds listed below, record the three requested journalentries. | ||||
| Dates and descriptions are notrequired. | ||||
| The Dorchester Companyinvested $100,000 in 5-year bonds. The bonds were purchased at parand bear interest at a rate of 8% per annum, payablesemiannually. | ||||
| (a) | Prepare the journal entry to record the initialinvestment. | |||
| (b) | Prepare the journal entry that Dorchester wouldrecord on each interest date. | |||
| (c) | Prepare the journal entry that Dorchester wouldrecord at maturity of the bonds. | |||
| a | Investment in bond | 100,000 | ||
| Cash | 100,000 | |||
| b | Cash | 4,000 | ||
| Interest income | 4,000 | |||
| c | Cash | 100,000 | ||
| Investment in bond | 100,000 | |||
| The Dorchester Companyinvested $100,000 of face amount of 5-year bonds. The bonds werepurchased at 103 and bear interest at a stated rate of 8% perannum, payable semiannually. | ||||
| (a) | Prepare the journal entry to record the initialinvestment. | |||
| (b) | Prepare the journal entry that Dorchester wouldrecord on each interest date. | |||
| (c) | Prepare the journal entry that Dorchester wouldrecord at maturity of the bonds. | |||
| a | ||||
| b | ||||
| c | ||||
| The Dorchester Companyinvested $100,000 of face amount of 4-year bonds. The bonds werepurchased at 98 and bear interest at a stated rate of 8% per annum,payable semiannually. | ||||
| (a) | Prepare the journal entry to record the initialinvestment. | |||
| (b) | Prepare the journal entry that Dorchester wouldrecord on each interest date. | |||
| (c) | Prepare the journal entry that Dorchester wouldrecord at maturity of the bonds. | |||
Jamar FerryLv2
28 Sep 2019
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