Macy\'s, Inc. (formerly Federated Department Stores, Inc.) operates more than 88
ID: 2389994 • Letter: M
Question
Macy's, Inc. (formerly Federated Department Stores, Inc.) operates more than 880 department and furniture stores under the names of Macy's and Bloomingdales. The company does more than $19.00 billion in sales each year.
Assume that as part of its cash management strategy, Macy's purchased $10.00 million in bonds at par for cash on July 1, 2009. The bonds pay 8.20 percent annual interest each June 30 and December 31 and mature in 10 years. Macy's plans to hold the bonds until maturity.
rev: 02-28-2011
Assume that as part of its cash management strategy, Macy's purchased $10.00 million in bonds at par for cash on July 1, 2009. The bonds pay 8.20 percent annual interest each June 30 and December 31 and mature in 10 years. Macy's plans to hold the bonds until maturity.
Explanation / Answer
Requirement 1: Dr $ Cr $ 1-Jul-09 Investments / Investments held to meturity 10000000 Cash 10000000 ( Being bonds purchased worth of $10 million) Dr $ Cr $ 1-Jul-09 Investments / Investments held to meturity 10000000 Cash 10000000 ( Being bonds purchased worth of $10 million)
Requirement 2: 31-Dec-09 Cash 410000 Interest Revenue 410000 (Being interest received for 6 months(10000000*8.2*6/12)) 31-Dec-09 Cash 410000 Interest Revenue 410000 (Being interest received for 6 months(10000000*8.2*6/12))
Thank you.... Dr $ Cr $ 1-Jul-09 Investments / Investments held to meturity 10000000 Cash 10000000 ( Being bonds purchased worth of $10 million)
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