Salt foods purchases forty $1,000, 7%, 10-year bonds issued by pretzelmania, incorporated, for $37,282 on january 1. The market interest rate for bonds of similar risk and maturity is 8%. Salt foods receives interest semiannually on june 30 and december 31.

Question

24-11-2022
Business

contestada

Salt foods purchases forty $1,000, 7%, 10-year bonds issued by pretzelmania, incorporated, for $37,282 on january 1. The market interest rate for bonds of similar risk and maturity is 8%. Salt foods receives interest semiannually on june 30 and december 31.

Respuesta :

Otras preguntas

Selecciona las frases apropiadas para formar oraciones correctas y lógicas. Opciones Enviemos este paquete No pasemos toda la tarde Ahorremos para comprarnos A

( 5 x − 8 ) ( 2 x + 6 ) (5x − 8)(2x + 6)

Rewrite in simplest terms: 9, left bracket, 0, point, 7, a, plus, 0, point, 3, right bracket, plus, 8, a9(0.7a+0.3)+8a

What are five major staff positions in a candidate’s campaign organization?

An observer (O) is located 500 feet from school (S). The observer notices a bird (B) flying at a 39 degrees angle of elevation from his line sight (05. 03 MC) n

On appelle la fonction logarithme décimal (notée log) la fonction définie, pour tout réel x > 0, par log = ln ln10 x x . 1. a) Montrer que log(10n) = n avec

In a series of experiments on the decomposition of dinitrogen pentoxide, N2O5, rate constants were determined at two different temperatures: • At 35°C, the rate

Identify which details are most important or less important for an objective summary of the passage. 1. but distinct voice—Hekinah degul! the others repeated t

Sally applies a total force of 404 N with a rope to drag a wooden crate of mass 80 kg across a floor with a constant acceleration in the x-direction of a = 0.1

Gavin was on a fishing trip with his family on a lake. In the lake, 25% of the fish are bass. Gavin captures a fish, records whether it is bass or another speci

abiolataiwo2015 abiolataiwo2015 · Answer 1 · 2022-11-29T12:08:08+01:00

The market interest rate for bonds of similar risk and maturity is 8%. Salt foods receives interest semiannually on june 30 and December 31. The appropriate journal entry is: Debit Investment $37,282, Credit Cash $37,282.

How to prepare the journal entry?

a. Debit Investment $37,282

Credit Cash $37,282

(To record the purchase of bonds)

b. Debit Cash $1,400

[($1,000 × $40) × 0.07 × 6 ÷ 12)]

Credit Investment $91

Credit Interest revenue

($37,282 ×8% × 6 ÷ 12) $1,491

(To record semi- annual interest revenue)

Therefore the entry is the appropriate journal entry is: Debit Investment $37,282, Credit Cash $37,282.

Learn more about journal entry here:https://brainly.com/question/14279491

#SPJ1

The complete question is:

Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $37,282 on January 1. The market interest rate for bonds of similar risk and maturity is 8%. Salt Foods receives interest semiannually on June 30 and December 31.

Record the investment in bonds.2. Record receipt of the first interest payment on June 30.