Business, 25.02.2020 05:23 thevampsrock3

On April 1, Alliance Company purchased $50,000 of Tetter Company's 12% bonds at 100 plus accrued interest of $2,000. On June 30, Alliance received its first semiannual interest. On February 1, Alliance sold $40,000 of the bonds at 103 plus accrued interest. The journal entry Alliance will record on April 1 for the purchase of the bonds will include a:

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Answer from: Amber423

The journal entry will include

Investments in debt securities - Tetter Company bonds (Dr) $50,000

Explanation:

Since the bonds was purchased as investments for $50,000 they will be an asset for the Alliance company and hence will be debited as per the accounting principle of debiting all incoming assets.Investment is a real account and it will be debited with the face value of $50,000. The bond will be recorded in Alliance's books at face value i.e $50,000.

The journal entry made in the books of Alliance Company at the time of purchase would have been:

Investments in debt securities - Tetter Company bonds (Dr) $50,000

Answer from: tonio638

Dr Investment in bonds - Tetter Company 50,000

Dr Interest receivable 2,000

Cr Cash 52,000

Explanation:

At April 1, Alliance Company purchased $50,000 worth of bonds at face value (100) plus $2,000 accrued interest.

The company paid in total $52,000 for the transaction, and it should have recorded $50,000 as investment in bonds + $2,000 as interest receivable.

Answer from: Quest

answer: b) the us is the leading importer but not the leading exporter.

extra info:

the u.s is the largest importer but it is not the largest exporter as china sits on the top of the table when it comes to leading exporters.

but u.s is not far from first,

they rank in 2nd globally as the worlds largest exporter.

happy to

pls mark as brainliest

Answer from: Quest

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

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On April 1, Alliance Company purchased $50,000 of Tetter Company's 12% bonds at 100 plus accrued int...

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