Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1,2025, metlock company purchased 10% b

On January 1,2025, Metlock Company purchased 10% bonds...

60.1K

Verified Solution

Question

Accounting

image
image
On January 1,2025, Metlock Company purchased 10% bonds having a maturity value of $260,000 for $280,761.26. The bonds provide the bondholders with a 8% yield. They are dated January 1,2025, and mature January 1,2030, with interest received on January 1 of each year. Metlock Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method 10% Bonds Sold to Yield 8% \begin{tabular}{|c|c|c|c|c|c|} \hline Date & \begin{tabular}{c} Cash \\ Received \end{tabular} & & \begin{tabular}{l} Interest \\ Revenue \end{tabular} & & \begin{tabular}{l} Premium \\ Amortized \end{tabular} \\ \hline 1/1/25$ & 260,000 & $ & & $ & \\ \hline 1/1/26 & 260000 & & & & 103806,30 \\ \hline 1/1/27 & 260000 & & & & \\ \hline 1/1/28 & 260000 & & & & \\ \hline 1/1/29 & 260000 & & & & \\ \hline 1/1/30 & 260000 & & & & \\ \hline \end{tabular}

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Point Slope Form Point slope form y y m x x An equation of a...

Algebra
Q

Suppose µ is the mean of a normally distributed population for which the standard deviation is...

Statistics
Q

A carpet company advertises that it will deliver your carpet within 15 days of purchase. A...

Statistics
Q

Use your calculator to find the value of the function in terms of degree:Please round...

Basic Math
Q

Find any absolute or local maximum and minimum values of f x 8 2x if...

Calculus
Q

h. 120,925 11 51939 D. st7 nas

Accounting
Q

Andrew Buckner earns $1680 per week. He is married and claims three exemptions. What is...

Accounting
Q

An individual contributes property with a basis of $15000, and fair market value of $20000...

Accounting
Q

1. Payroll taxes levied against employees become liabilities a. when the payroll is paid to...

Accounting
Q

Cheyenne Corp. reports net sales of $884,000, gross profit of $462,000, and net income of...

Accounting
Q

At the beginning of the year (January 1), Buffalo Drilling has $11,000 of common stock...

Accounting
Q

Tonya Martin, CMA and controller of the Parts Division of Gunderson Inc., was meeting with...

Accounting