Clayton Mobile Windshield Repair purchase& interest accrual
Not what you're looking for?
Clayton Mobile Windshield Repair recently paid $19,200 plus a $400 brokerage fee on November 01, 2011 to buy Circuit South 9%, five year semi-annual bonds payable with a $20,000 par value. Given the purchase transaction and related accrual of interest below please fill in the blanks.
All answers should be in whole dollars with no dollar signs, or commas
Account and Description Debit Credit
Long-Term Investments-Circuit South _______
Cash ___________
Purchased bonds to be held to maturity
Interest Receivable _______
Interest Revenue ___________
Purchase this Solution
Solution Preview
It is not completely clear when the semi-annual interest payment dates are so I will assume they are Jan 1 and Jul 1 to demonstrate how this works.
When you purchased the bond, you would have "bought" the interest accrued since the last payment date of July ...
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Lean your Process
This quiz will help you understand the basic concepts of Lean.