Reference no: EM131291937
(Entries for Held-to-Maturity Securities) On July 1, 2014, Salt Mine Corporation purchased at par 8% bonds having a maturity value of $250,000. The bonds are dated July 1, 2014, and mature July 1, 2019, with interest payable on July 1 of each year. The bonds are classified in the held-to-maturity category, and the company does not use reversing entries. (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entry to record the interest earned and interest received for 2014. (c) Prepare the journal entries to record the interest earned and interest received for 2015.
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Journalize the redemption of the bonds
: On December 31, a $1,850,000 bond issue on which there is an unamortized discount of $74,900 is redeemed for $1,799,500. Journalize the redemption of the bonds.
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General building supplies to building contractors
: Carter Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: o Sales are budgeted at $380,000 for November, $390,000 for December, and $400,000 for J..
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Calculate the times interest earned ratio
: Sales are $1.5 million, cost of goods sold is $600,000, depreciation expense is $150,000, other operating expenses is $300,000, addition to retained earnings is $146,250, dividends per share is $1, tax rate is 30 percent, and number of shares of comm..
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Calculate the value of cash and marketable securities
: Mandesa, Inc., has current liabilities of $8 million, current ratio of 2 times, inventory turnover of 12 times, average collection period of 30 days, and credit sales of $64 million. Calculate the value of cash and marketable securities.
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Prepare the journal entry to record the interest earned
: On July 1, 2014, Salt Mine Corporation purchased at par 8% bonds having a maturity value of $250,000. The bonds are dated July 1, 2014, and mature July 1, 2019, with interest payable on July 1 of each year. The bonds are classified in the held-to-mat..
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Minimum working capital strategy
: When the length of the financing is directly related to the life of the asset being financed, the firm is said to follow a: policy of maturity matching. restrictive financing strategy. matched depreciation strategy. minimum working capital strategy.
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Determine the earnings per share on common stock
: Miller Co., which produces and sells skiing equipment, is financed as follows: Bonds payable, 10% (issued at face amount) $550,000 Preferred $1 stock, $10 par 550,000 Common stock, $25 par 550,000 Income tax is estimated at 40% of income. Determine t..
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Explain the relationship of the parties in capital markets
: Explain the relationship of the parties in the capital markets. What are the direct and indirect conflicts of interests, if any, of each? How are conflicts resolved?
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What is the maximum amount you will pay for the new process
: A manufacturer makes 7,900,000 bottles of supplements per year. Each bottle takes 0.4 minutes of direct labor at the rate of $8 per hour. The overhead costs are estimated at $11 per direct labor hour. The new process will reduce the unit production t..
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