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$50,000 for $42,000. Carmello Corporation intends to hold the bonds until the ma

ID: 2722113 • Letter: #

Question

$50,000 for $42,000. Carmello Corporation intends to hold the bonds until the maturity date of January 1, 2025. Interest is paid semiannually on January 1 and July 1. What journal entry(ies) Is(are) prepared on July 1.2015? debit Cash $1, 250 and credit Interest Receivable $1, 250 debit Cash $2,500 and credit Interest Revenue $2,500 debit Cash $1, 250 and credit Interest Revenue $1, 250; debit Held-to-Maturity Investment in Bonds $400 and credit Interest Revenue $400 debit Interest Receivable $1, 250 and credit Interest Revenue $1, 250; debit Held-to-Maturity Investment in Bonds $400 and credit Interest Revenue $400 Too difficult to find the answer.

Explanation / Answer

15 ans is E Too dificult to find the answer as rate is not given

16 ans is Cost, Fair Value

17 ans is A debit unrealized loss on available for sale securities for $1000 and credit available for sale securities for $1000

18 ans is B $5.65

4800/850 = $5.65