On January 1, 2024, the Cook's Restaurant decides to invest in Lake Dimford bonds. The bonds mature on December 31, 2029, and pay interest on June 30 and December 31 at 6% annually. The market rate of interest was 6% on January 1, 2024, so the $140,000 maturity value bonds sold for face value. Cook's intends to hold the bonds until December 31, 2029. Requirement 1. Journalize the transactions related to Cook's investment in Lake Dimford bonds during 2024. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing Cook's investment in Lake Dimford bonds on January 1, 2024. Date Accounts and Explanation 2024 Jan. 1 Next, journalize Cook's receipt of interest on June 30, 2024. Accounts and Explanation Date 2024 Jun. 30 Now journalize Cook's receipt of interest on December 31, 2024. Date Accounts and Explanation 2024 Dec. 31 Debit Debit Debit Credit Credit Credit Requirements 1. Journalize the transactions related to Cook's investment in Lake Dimford bonds during 2024. In what category would Cook's report the investment on the December 31, 2024, balance sheet? 2. Requirement 2. In what category would Cook's report the investment on the December 31, 2024, balance sheet? Cook's would report the investment as a(n) debt investment classified as a asset on the December 31, 2024, balance sheet.
On January 1, 2024, the Cook's Restaurant decides to invest in Lake Dimford bonds. The bonds mature on December 31, 2029, and pay interest on June 30 and December 31 at 6% annually. The market rate of interest was 6% on January 1, 2024, so the $140,000 maturity value bonds sold for face value. Cook's intends to hold the bonds until December 31, 2029. Requirement 1. Journalize the transactions related to Cook's investment in Lake Dimford bonds during 2024. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing Cook's investment in Lake Dimford bonds on January 1, 2024. Date Accounts and Explanation 2024 Jan. 1 Next, journalize Cook's receipt of interest on June 30, 2024. Accounts and Explanation Date 2024 Jun. 30 Now journalize Cook's receipt of interest on December 31, 2024. Date Accounts and Explanation 2024 Dec. 31 Debit Debit Debit Credit Credit Credit Requirements 1. Journalize the transactions related to Cook's investment in Lake Dimford bonds during 2024. In what category would Cook's report the investment on the December 31, 2024, balance sheet? 2. Requirement 2. In what category would Cook's report the investment on the December 31, 2024, balance sheet? Cook's would report the investment as a(n) debt investment classified as a asset on the December 31, 2024, balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2024, the Cook's Restaurant decides to invest in Lake Dimford bonds. The bonds mature on December 31, 2029, and pay
interest on June 30 and December 31 at 6% annually. The market rate of interest was 6% on January 1, 2024, so the $140,000 maturity
value bonds sold for face value. Cook's intends to hold the bonds until December 31, 2029.
Next, journalize Cook's receipt of interest on June 30, 2024.
Accounts and Explanation
Requirement 1. Journalize the transactions related to Cook's investment in Lake Dimford bonds during 2024. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Begin by journalizing Cook's investment in Lake Dimford bonds on January 1, 2024.
Date
Accounts and Explanation
2024
Jan. 1
Date
2024
Jun. 30
Now journalize Cook's receipt of interest on December 31, 2024.
Date
Accounts and Explanation
2024
Dec. 31
Debit
Debit
Debit
Credit
Credit
Credit
C
Requirement 2. In what category would Cook's report the investment on the December 31, 2024, balance sheet?
Cook's would report the investment as a(n)
debt investment classified as a
Requirements
1. Journalize the transactions related to Cook's investment in Lake Dimford bonds during 2024.
2. In what category would Cook's report the investment on the December 31, 2024, balance sheet?
asset on the December 31, 2024, balance sheet.
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