Record the cash received for interest revenue and receivable

Assignment Help Accounting Basics
Reference no: EM131911267

Problem

On March 1, 2016, Navy Corporation used excess cash to purchase U.S. Treasury bonds for $102,000 plus accrued interest. The bonds were purchased at face value. The appropriate interest rate is 6%. Interest on these bonds is payable on January 1 and July 1 of each year. Navy's investment is accounted for as held to maturity. The fair value of the Treasury bonds is $103,000 at year-end.

1. Record the purchase of U.S Treasury bonds for cash and accured interest.

2. Record the cash received for interest revenue and receivable.

3.Record the entry for interest received.

Reference no: EM131911267

Questions Cloud

Discuss different concepts presented in the article : Discuss at least 3 different concepts presented in the articles. As an IT professional, how would you apply the three (3) concepts you identified.
Commonalities and differences with your topics : present to the class the commonalities and differences with your topics but emphasizing why they are important to society non-the-less
Compute the amount to be reported as the cost of land : Compute the amount to be reported as the cost of land. Determine the amount to be reported as the cost of land improvements.
When is each type of testing appropriate : Discuss the advantages and disadvantages of each type of testing. When is each type of testing appropriate?
Record the cash received for interest revenue and receivable : Record the purchase of U.S Treasury bonds for cash and accured interest. Record the cash received for interest revenue and receivable.
What is the synchronization bit in a t-1 frame used for : What is the bandwidth required (in bps) if synchronous time division multiplexing is used, if we use the standard analog-to-digital sampling rate.
What are the four functions of inventory : What are the four functions of inventory? What are the four functions of inventory?
Explain what an accounts receivable aging report is : Explain what an Accounts Receivable Aging Report is. How is it helpful in the calculation and analysis of Bad Debt Expense?
Define ongoing system maintenance roles : Define ongoing system maintenance roles and responsibilities (Corrective, Adaptive, Protective, Preventive).

Reviews

Write a Review

Accounting Basics Questions & Answers

  Implementing the change to equity method

Gerken Company concluded at the beginning of 2013 that the company's ownership interest in DillCo had increased to the point that it became appropriate to begin using the equity method to account for the investment.

  What types of activities are internal service funds used

what types of activities are internal service funds used to account?

  What amount of deferred tax liability should be reported

Oxford's tax rate for 2012 and years thereafter is 30%. In its December 31, 2012 balance sheet, what amount of deferred tax liability should be reported

  A company plans to issue shares and wants to know the secs

a company plans to issue shares and wants to know the secs stance on the accounting treatment for the costs of issuing

  Preparation of the annual operating

X Ltd manufactures and sells one product. You are presented with the following information for the preparation of the annual operating budget for the period ending 31 December 2016:

  Calculate ending inventory and cost of goods sold

Required - Calculate ending inventory and cost of goods sold for 2018 assuming the company uses FIFO with a periodic inventory system

  The new equipment will deliver cost savings

A company is considering investing in some new equipment. The new equipment will deliver cost savings of $100,000 in the first year and $130,000 in the second year, before being sold for $56,000 at the end of the second year.

  Prepare a partial balance sheet showing the

entries for held-to-maturity securities on july 1 2014 salt mine corporation purchased at par 8 bonds having a maturity

  Describe how the separation of authorization of production

Describe how the separation of authorization of production transactions physical custody of inventories can be specified among the production, inventory, and cost accounting departments.

  How will the bonds be presented on the balance sheet

The bonds mature in 10 years. How will the bonds be presented on the balance sheet

  Carrolton inc currently sells widgets for 80 per unit the

carrolton inc. currently sells widgets for 80 per unit. the variable cost is 30 per unit and total fixed costs equal

  Investment using the equity method

Investment using the equity method

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd