Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 1 (2 points) on january 1, 2018, burkett

Question 1 (2 points) On January 1, 2018, Burkett Corporation purchased, as a long-term investment,...

60.1K

Verified Solution

Question

Accounting

image
Question 1 (2 points) On January 1, 2018, Burkett Corporation purchased, as a long-term investment, a $25,000, 5% bond, for $21,595. At this time, the market rate of interest was approximately 7%. The bond pays interest on January 1 and July 1. On December 31, 2018, the fair value of the bonds was $23,950. What is the entry to record the purchase? 21,595 21,595 25,000 Long-Term Investments Cash Long-Term Investments Unrealized Gain on Long-Term Investments Cash Long-Term Investments Unrealized Loss on Long-Term Investments Cash Long-Term Investments Interest Revenue 3,405 21,595 21,595 3,405 25,000 25,000 3,405 Cash 21,595

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

2. Consider an entrepreneur who has a business item. It requires an initial investment of $10...

Finance
Q

Mr. Sam Golff desires to invest a portion of his assets in rental property. He has...

Finance
Q

Bonita Corp. has 150,240 shares of common stock outstanding. In 2017, the company reports income from...

Accounting
Q

d a possible formula for the trigonometric function represented by the given table of values...

Geometry
Q

H Ontext A physician visit has estimated its expected reimbursement and variable cost per visit...

Statistics
Q

Simplify the following expression 4 2 Type an integer or a simplified fraction

Algebra
Q

Wynn Sheet Metal reported an operating loss of $210,000 for financial reporting and tax purposes...

Accounting
Q

Flounder Industrial Products Inc. is a diversified industrial-cleaner processing company. The companys Dargan plant produces...

Accounting
Q

FCC Company ended last year with 2,000 units in inventory. The sales budget this year...

Accounting
Q

Question 12 (1 point) Which financial statement is prepared first? Statement of financial position Statement...

Accounting
Q

Subcontracting: 80 units available over the 5-month period Beginning inventory: 0 units Ending inventory required:...

Accounting
Q

(Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 8.0...

Finance