Purchase and sale of bonds

Reference no: EM13954206

Purchase and Sale of Bonds

Starship Enterprises enters into the following transactions during 2014 and 2015:

2014

Jan. 1: Purchased $100,000 face value of Northern Lights Inc. bonds at face value.

The newly issued bonds have an interest rate of 8% paid semiannually on June 30 and December 31. The bonds mature in five years.

June 30: Received interest on the Northern Lights Inc. bonds.

Dec. 31: Received interest on the Northern Lights Inc. bonds.

2015

Jan. 1: Sold the Northern Lights Inc. bonds for $102,000.

Required:

1. Prepare all necessary journal entries on Starship's records to account for its investment in the Northern Lights bonds.

2. Why was Starship able to sell its Northern Lights bonds for $102,000?

Reference no: EM13954206

Questions Cloud

Measurement in financial statements : What are two possible attributes to be measured when an item is to be included in financial state- ments? What unit of money is used to measure items in the United States?

Compute the empirical probability that spinner will land : One car is selected at random from the cars with vehicle tags from these cities. What is the probability that this car is from Salem?

Microbiology and industry in petroleum fuels : You are the science reporter for your local newspaper. Your editor asks you to write an article on a major topic within the general field of microbiology. He stipulates that in this article you need to include the following three things:

Purchase and sale of bonds : Starship Enterprises enters into the following transactions during 2014 and 2015:

General education outcome for diversity : Your final project will address the second course outcome, which is also the General Education Outcome for Diversity and Global Understanding: Explain the concepts of diversity and inclusion in the context of U.S. society and culture as well as in..

Problem regarding the certificate of deposit : On May 31, 2014, Elmer Corp. purchased a 120-day, 9% certificate of deposit for $50,000. The CD was redeemed on September 28, 2014. Prepare the journal entries on Elmer's books to account for:

What are the atomic numbers and neutron numbers : Bromine has two natural isotopes, BR-81 (49.5%) and Br-79 (50.5%)- What are the atomic numbers and neutron numbers of these isotopes? Use this information to explain why the atomic weight of chlorine is 79.9

Interpret the quote in terms of natural selection : "It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change."

User Account

All Pages