On July 1 . 2014, Chelsea Company purchased as a long-term investment Soho Company's ten-year, 9 percent bonds, with a face value of $100,000 for $95,200 . Interest is payable semiannually on January 1 and July 1 . The bonds mature on July 1 . 2018 . Chelsea uses the straight-line method of amortization. What is the amount of interest revenue that Chelsea should report in its income statement for
the year ended December 31 . 2014?
a. $3,900
b. $4,500
c. $5,100
d. $5,700
C
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The recording of amortization of intangibles generally results in a
a. credit directly to the asset account that is being amortized. b. debit directly to the asset account that is being amortized. c. credit a contra-asset account called Accumulated Amortization. d. debit a contra-asset account called Accumulated Amortization. e. none of the above
Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital balances are $80,000 and $120,000 respectively. Income Summary has a credit balance of $30,000. What is Tomas' capital balance after closing Income Summary to Capital?
A) $102,500 B) $22,500 C) $57,500 D) $127,500
Which of the following is a disadvantage of form letters?
A. They have poorer content quality. B. They increase a company's cost and time required to write letters. C. They fail to add a personal touch to the message in them. D. They have more errors.
Systems of mutually-supporting human resources practices that combine flexibility with employee involvement in decision making are called ____________________.
A. quality circles B. high-performance work systems C. self-directed work teams D. functional employee initiatives