Seamark buys $300,000 of Eider's 8% five-year bonds payable at par - 15736

Solution Posted by
yousafbhutta

yousafbhutta

Rating : (28)C
Solution Detail
Price: $0.50
  • From: Business,
  • Posted on: Tue 19 Mar, 2013
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

Seamark buys $300,000 of Eider's 8% five-year bonds payable at par value. Interest payments are made semiannually. Seamark plans to hold the bonds for the five year life. When the bonds mature, the journal entry to record the proceeds will be:
 
Debit Cash $300,000; credit Interest Receivable $300,000.
 
Debit Cash $300,000; credit Bonds Payable $300,000.
 
Debit Long-Term Investments-HTM $300,000; credit Cash $300,000.
 
Debit Cash $300,000; credit Long-Term Investments-HTM $300,000.
 
Debit Cash $300,000; credit Interest Revenue $300,000.
                                       

Solution Description

 

Seamark buys $300,000 of Eider's 8% five-year bonds payable at par value. Interest payments are made semiannually. Seamark plans to hold the bonds for the five year life. When the bonds mature, the journal entry to record the proceeds will be: