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Question
On May 1 of the current year, a company paid $200,000 cash to purchase 6%, 10-year bonds with a par value of $200,000; interest is paid semiannually each May 1 and November 1. The company intends to hold these bonds until they mature. Prepare the journal entry to record the bond purchase.
Answer
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On May 1 of the current year, a company paid $200,000 cash to purchase 6%, 10-year bonds with a par value of $200,000; interest is paid semiannually each May 1 and November 1. The company intends to hold these bonds until they mature. Prepare the journal entry to record the receipt of the first semiannual interest payment on November 1.
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B) Other comprehensive income includes unrealized gains and losses on available-for-sale securities.
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Use the information provided to calculate the cash paid for insurance for the period
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Cash paid for insurance.. $
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Use the information provided below to calculate the cash paid for interest for the period.
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Cash paid for interest $
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Explain the use of a spreadsheet in the preparation of the statement of cash flows.