ACCT 301-Beckwith Boots invested $100,000 in 5-year

B-09.05 Part 1Beckwith Boots invested $100,000 in 5-year bonds issued by Ace Brick Company. Thebonds were purchased at par on January 1, 20X1, and bear interest at a rate of 8% perannum, payable semiannually.(a) Prepare the journal entry to record the initial investment on January, 20X1. (b) Prepare the journal entry that Beckwith would record on each interest date. (c) Prepare the journal entry that Beckwith would record at maturity of the bonds. (d) How much cash flowed “in” and “out” on this investment, and how does thedifference compare to total interest income that was recognized? Part 2Beckwith Boots invested $100,000 in 5-year bonds issued by Ace Brick Company. Thebonds were purchased at 103, and bear interest at a stated rate of 8% per annum,payable semiannually.(a)(b)(c)(d)Part 3 Prepare the journal entry to record the initial investment on January, 20X1.Prepare the journal entry that Beckwith would record on each interest date.Prepare the journal entry that Beckwith would record at maturity of the bonds.How much cash flowed “in” and “out” on this investment, and how does thedifference compare to total interest income that was recognized? Beckwith Boots invested $100,000 in 5-year bonds issued by Ace Brick Company. Thebonds were purchased at 98, and bear interest at a stated rate of 8% per annum,payable semiannually.(a)(b)(c)(d) Prepare the journal entry to record the initial investment on January, 20X1.Prepare the journal entry that Beckwith would record on each interest date.Prepare the journal entry that Beckwith would record at maturity of the bonds.How much cash flowed “in” and “out” on this investment, and how does thedifference compare to total interest income that was recognized? B-09.05 (d) Name:Date: B-09.05 Section: Part 1 Part 2 (a)(b)(c) (a)(b)(c) GENERAL JOURNAL DateIssue GENERAL JOURNAAccounts Investment in Bonds Debit100,000 Cash Interest Cash Investment Bonds DateIssue 100,000 4,000 Interest Income Maturity Cash Credit Interest4,000 Maturity 100,000100,000 (d) There was $40,000 of cash flow as that would be the interest recognized over (d)time. $103,000 flowed “ointerest income Name:Date: B-09.05 Section: Part 3 )(b)(c) (a)(b)(c) GENERAL JOURNAL AccountsInvestment inBondsCash GENERAL JOURNAL Debit Credit 103,000 Issue103,000 CashInvestment inBondsInterestIncome CashInvestment inBonds Date AccountsInvestment inBondsCash Debit98,000 Interest CashInvestment inBondsInterest Income 100,000100,000 $103,000 flowed “out” and $45,000 flowed “in” as (d)interest income Maturity CashInvestment inBonds 100,000 Name:Date: Credit98,000 100,000 Section: B-09.05 B-13.06 Part 1Ace Brick company issued $100,000 of 5-year bonds. The bonds were issued at par onJanuary 1, 20X1, and bear interest at a rate of 8% per annum, payable semiannually. (a) Prepare the journal entry to record the bond issue on January, 20X1. (b) Prepare the journal entry that Ace would record on each interest date. (c) Prepare the journal entry that Ace would record at maturity of the bonds. (d) How much cash flowed “in” and “out” on this bond issued, and how does the differencecompare to total interest expense that was recognized? Part 2Ace Brick company issued $100,000 of 5-year bonds. The bonds were issed at 103, and bearinterest at a stated rate of 8% per annum, payable semiannually. The premium is amortizedby the straight-line method.(a)(b)(c)(d) Prepare the journal entry to record the initial issue on January, 20X1.Prepare the journal entry that Horton would record on each interest date.Prepare the journal entry that Horton would record at maturity of the bonds.How much cash flowed “in” and “out” on this bond issue, and how does the difference Part 3Ace Brick company issued $100,000 of 5-year bonds. The bonds were issued at 98, and bearinterest at a stated rate of 8% per annum, payable semiannually. The discount is amortizedby the straight-line method.(a)(b)(c)(d) Prepare the journal entry to record the initial issue on January, 20X1.Prepare the journal entry that Horton would record on each interest date.Prepare the journal entry that Horton would record at maturity of the bonds.How much cash flowed “in” and “out” on this bond issue, and how does the difference Name:Date: B-13.06 Section: Part 1 Part 2 (a)(b)(c) (a)(b)(c) GENERAL JOURNAL Date (d) GENERAL JOURNAAccounts Debit Credit Date Issue Issue Interest Interest Maturity Maturity (d) Name:Date: B-13.06 Section: Part 3 )(b)(c)GENERAL JOURNAL Accounts (a)(b)(c) Debit GENERAL JOURNAL AccounDatetsIssue Credit Interest Maturity (d) Debit Credit B-16.08 Gainesville Corporation’s income statement revealed sales of $700,000; gross profitof $300,000; selling and administrative costs of $140,000; and income taxes of$45,000. The selling and administrative expenses included $10,000 for depreciation.The company’s operating activities generated positive cash flow of $129,000. Usethe “indirect” approach to demonstrate how this amount was calculated. Thefollowing additional information is available: Beginning-ofPeriod Balance End-of-PeriodBalance ,000 $82,000 Inventory 50,000 41,000 Accounts payable 37,000 44,000 Account receivable Name:Date: B-16.08 Section: Cash flows from operating activities:Net income $ – Add (deduct) noncash effects on operating income$ – Net cash provided by operating activities $ 129,000