On January 1, 2022, JBT Company Purchased at Face Value

question 138

Short Answer

On January 1, 2022, JBT Company purchased at face value, a $1,000 6%, bond that pays interest on January 1.JBT Company has a calendar year end.The entry for the receipt of interest on January 1, 2023 is

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Definitions:

Multinational Corporations

Companies that operate in multiple countries, managing production or delivering services in more than one country.

Divisions and Branches

Parts of a company that operate semi-independently but are not separate legal entities; branches are local offices or shops, while divisions are specialized departments.

Foreign Stocks

Shares of companies based outside the investor's own country, traded on foreign stock exchanges.

Investment Portfolios

A collection of investments held by an individual or institution which may include stocks, bonds, real estate, and more, diversified to manage risk.