Suppose that $5,000 of 5% bonds were purchased on April 1,2017,by a company whose year end is December 31,as a Long-Term Investment .Interest dates are April 1 and October 1.The bonds mature 36 months from date of purchase.The purchase price of the bonds was $5,120,and the premium is amortized on a straight-line basis.Assume the proper adjusting entry was made on December 31,2017,to record accrued interest receivable and amortization of the premium.What will be the total interest revenue recorded by the investor on April 1,2018?
A) $52.51
B) $62.50
C) $72.50
D) $125.00
Correct Answer:
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Q142: Parent Corporation paid $100,000 to acquire
Q143: Parent Corporation paid $105,000 to acquire
Q144: Table 16-4
Parson Products Inc. purchased $186,000, 10%,
Q145: Long-term investments in bonds are reported on
Q146: Long-term bond investments are reported on the
Q148: The maximum amount received at the maturity
Q149: On December 31,2017,Parent Corporation paid $800,000
Q150: Table 16-11
Parent Corporation paid $110,000 to
Q151: Parent Corporation paid $105,000 to acquire
Q152: Long-term investments in bonds are accounted for
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