Question 3:

During its first year of operation, the Viet Thai JSCpurchased short-term

Question 4:

Assume that the Sedona Town Club purchased the bonds of the Hoang Anh Gia Lai Corp. Thesebonds have a total face value of $4,000, a stated annual interest rate of 18%, and interest payment dates of September 1 and March 1. Sedona Town Club purchased these bonds on July 1 at 96 plus four months of accrued interest and a brokerage fee of $50. The entry to record the receipt of interest on September 1 on Sedona Town Club’s books would be

  • Attachment 1
  • Attachment 2

A. Decline in Value of Short-Term Investments $ 4,700Allowance for Decline In Value of Short-Term Investments $ 4,700B. Decline in Value of Short-Term Investments $85,000Allowance for Decline in Value of Short-TermInvestments $85,000C. Allowance for Decline in Value of Short-TermInvestments $ 4,700Decline in Value of Short-Term Investments $ 4,700 D. None of the above because no entry would be required.