Solved

General Investment Co The Investment in Bonds Has a Maturity In:
A)Two Years

Question 20

Short Answer

General Investment Co.(GIC)purchased bonds on January 1,2012.GIC's accountant has projected the following amortization schedule from purchase until maturity:
 Cash  Interest  Increase in  Carrying  Date  Paid  Expense  Carrying Value  Value 1/1/12$194,7586/30/12$7,000$7,790$790195,54812/31/127,0007,822822196,3706/30/137,0007,855855197,22512/31/137,0007,889889198,1146/30/147,0007,925925199,03912/31/147,0007,961961$200,000\begin{array}{rrrrr}& \text { Cash } & \text { Interest } & \text { Increase in } & \text { Carrying } \\\text { Date } & \text { Paid } & \text { Expense } & \text { Carrying Value } & \text { Value } \\1 / 1 / 12 & & & & \$ 194,758\\6 / 30 / 12 & \$ 7,000 & \$ 7,790 & \$ 790 & 195,548 \\12 / 31 / 12 & 7,000 & 7,822 & 822 & 196,370 \\6 / 30 / 13 & 7,000 & 7,855 & 855 & 197,225 \\12 / 31 / 13 & 7,000 & 7,889 & 889 & 198,114 \\6 / 30 / 14 & 7,000 & 7,925 & 925 & 199,039 \\12 / 31 / 14 & 7,000 & 7,961 & 961 & \$ 200,000\end{array}
The investment in bonds has a maturity in:
A)Two years.
B)Three years.
C)Six years.
D)Cannot be determined from the given information.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents