Record the cash received for interest revenue and receivable

Reference no: EM131911267

Problem

On March 1, 2016, Navy Corporation used excess cash to purchase U.S. Treasury bonds for $102,000 plus accrued interest. The bonds were purchased at face value. The appropriate interest rate is 6%. Interest on these bonds is payable on January 1 and July 1 of each year. Navy's investment is accounted for as held to maturity. The fair value of the Treasury bonds is $103,000 at year-end.

1. Record the purchase of U.S Treasury bonds for cash and accured interest.

2. Record the cash received for interest revenue and receivable.

3.Record the entry for interest received.

Reference no: EM131911267

Questions Cloud

Discuss different concepts presented in the article : Discuss at least 3 different concepts presented in the articles. As an IT professional, how would you apply the three (3) concepts you identified.

Commonalities and differences with your topics : present to the class the commonalities and differences with your topics but emphasizing why they are important to society non-the-less

Compute the amount to be reported as the cost of land : Compute the amount to be reported as the cost of land. Determine the amount to be reported as the cost of land improvements.

When is each type of testing appropriate : Discuss the advantages and disadvantages of each type of testing. When is each type of testing appropriate?

Record the cash received for interest revenue and receivable : Record the purchase of U.S Treasury bonds for cash and accured interest. Record the cash received for interest revenue and receivable.

What is the synchronization bit in a t-1 frame used for : What is the bandwidth required (in bps) if synchronous time division multiplexing is used, if we use the standard analog-to-digital sampling rate.

What are the four functions of inventory : What are the four functions of inventory? What are the four functions of inventory?

Explain what an accounts receivable aging report is : Explain what an Accounts Receivable Aging Report is. How is it helpful in the calculation and analysis of Bad Debt Expense?

Define ongoing system maintenance roles : Define ongoing system maintenance roles and responsibilities (Corrective, Adaptive, Protective, Preventive).

User Account

All Pages