h Show Attempt HistoryCurrent Attempt in ProgressDuring 2024, Golden Financial Corporation had the following trading investment transactions:Jan. 5 Purchased 435 FBC common shares for $95 per share.Jan. 15 Purchased 500 DSR common shares for $60,000.Feb.Jun.Aug11AugDec 1Purchased 6% TMR bonds at face value, for $80,700. Golden will receive interest from these bonds semi-annuFeb. 1 and Aug. 1.1Sold the TMR Bonds for $78.670.Sold 48 FBC common shares at $89 per share.Dec. 30DSR declared a dividend of $2.50 per share. payable on January 30 next year.Dec 31 The market prices of the FBC and DSR common shares were $85 and $125 per share, respectively.Received a cash dividend of $1 per share on the DSR common shares.Received the semi-annual interest on the TMR bonds. (a)Your answer is partially correct.Record the above transactions, including any required adjusting entries, using the fair value through profit or loss model. (List alldebit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Ifno entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in theproblem.)DateJan. 5Account Titles and ExplanationTrading InvestmentsCashDebit41325Credit4132

Investments in financial instruments known as debt involve lending money to a government, business,…

Answered: Current Attempt in Progress During…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.5P

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Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and issued on April 1, 2019, are due March 31, 2023, and pay interest semiannually on September 30 and March 31. Bats sold the bonds to yield 10%. Required: 1. Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2. Prepare a bond interest expense and premium amortization schedule using the effective interest method. 3. Prepare any adjusting entries for the end of the fiscal year, December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. Assume the company retires the bonds on June 30, 2020, at 103 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight-line method of amortization b. effective interest method of amortization
WORK Check my work Tanner-UNF Corporation acquired as an investment $235 million of 8% bonds, dated July 1, on July 1, 2024. Company management is holding the bonds in its treding portfolio. The market interest rate (yield) was 10% for bonds of similar risk and maturity. Tanner-UNF paid $200 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2024, was $215 million. Required: 1. & 2. Prepare the journal entry to record Tanner-UNF's Investment in the bonds on July 1, 2024 and interest on December 31, 2024, at the effective (merket) rate. 3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2024, balance sheet 4. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2025, for $180 milion. Prepare the journal entries…
Dont uplode any image in answer Tanner-UNF Corporation acquired as a long-term investment $250 million of 4.0% bonds, dated July 1, on July 1, 2024. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 7% for bonds of similar risk and maturity. Tanner-UNF paid $220.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2024, was $220.0 million. Required: 1. & 2. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2024 and interest on December 31, 2024, at the effective (market) rate. 3. At what amount will Tanner-UNF report its investment in the December 31, 2024, balance sheet? 4. Suppose Moody’s bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2025, for $200.0 million. Prepare…
On January 1, 2020, A Corp. had the following investments: Classification Investment MarketValue MaturityValue Cost Trading K Inc. bonds $1,900 $1,800 Trading S Co. bonds 3,100 3,000 Held-to-maturity G Inc. bonds (due 12/31/2022) $10,000 9,700 During the year, A Corp. acquired M Co. bonds for $1,000 and classified it as trading. At year-end, the M Co. bonds have fair market value of $1,200. The K Inc. investment on December 31 had a fair market value of $2,500. The S Co. investment had a December 31 market value of $3,500, and the G Inc. bonds had a December 31 market value of $9,850. Required: Indicate the balance sheet classification and where unrealized holding gains/losses would appear on the December 31, 2020 financial statements for each investment.
On January 1, 2020, A Corp. had the following investments: Classification Investment MarketValue MaturityValue Cost Trading K Inc. bonds $1,900 $1,800 Trading S Co. bonds 3,100 3,000 Held-to-maturity G Inc. bonds (due 12/31/2022) $10,000 9,700 During the year, A Corp. acquired M Co. bonds for $1,000 and classified it as trading. At year-end, the M Co. bonds have fair market value of $1,200. The K Inc. investment on December 31 had a fair market value of $2,500. The S Co. investment had a December 31 market value of $3,500, and the G Inc. bonds had a December 31 market value of $9,850. Required: Indicate the balance sheet classification and where unrealized holding gains/losses would appear on the December 31, 2020 financial statements for each investment. Classification Balance SheetValuation : Trading Securities (at fair value) $fill in the blank 2 : Held-to-maturity (amortized cost) $fill in the blank 4
The following investment account was taken from the general ledger of One Dream Investment Company: Debt Investments - Fulfilled Dream 6% bonds (2,000,000 face value, due December 31, 2027) Date PR Debit Credit Balance January2, 2022 VR VR P1,812,300 P1,812,300 June 30, 2022 CRJ 60,000 1,752,300 Dec. 31, 2022 CRJ 60,000 1,692,300 Dec. 31, 2022 195,000 1,497,300 In the course of your examination, you obtained the following information: Interest checks were received on June 30 and December 31 and were credited to the investment account. One dream sold P200,000 of its investment on December 31, 2022 for P195,000. Effective interest rate on this investment, as computed by your audit staff, is 8%. (4% - semi annual) One Dream included this investment in a portfolio that is held to collect and for sale. The fair value at December 31, 2022 and 2023 is 97.5 and 105, respectively. How much is the gain or…
Question: Akers Company invests its excess cash in marketable securities. At the beginning of 2019, it had the following portfolio of investments in trading debt securities: SecurityPar ValueAmortized Cost12/31/18 Fair ValueIvan Company 5% bonds, maturing on Dec. 31, 2028$10,000$8,400$9,400Taylor Company 6% bonds, maturing on Dec. 31, 2023$40,000$43,200$41,800Totals$51,600$51,200During 2019, the following transactions occurred: Mar. 31Purchased Hill Company 8% bonds with a face value of $20,000 for $20,000 plus accrued interest; interest is payable on the bonds each June 30 and December 31.Mar. 31Sold the Taylor Company investment for $42,000 plus accrued interest. The Taylor bonds pay interest on December 31 of each year.June 30Received the semiannual interest on the Hill Company bonds.Dec. 31Received the annual interest on the Ivan Company bonds and the semiannual interest on the Hill Company bonds.The December 31 closing market prices were as follows: Ivan Company bonds, $9,000;…
Current Attempt in Progress Pharoah Corporation had the following transactions pertaining to debt investments. 1. Purchased 80 Leeds Co. 8% bonds (each with a face value of $1,000) for $80,000 cash. Interest is payable annually on January 1,2022. 2. Accrued interest on Leeds Co. bonds on December 31, 2022. 3. Received interest on Leeds Co. bonds on January 1, 2023. 4. Sold 70 Leeds Co. bonds for $76,300 on January 1, 2023. Journalize the transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) No. Date Account Titles and Explanation Debit Credit
Current Attempt in Progress Selected transactions on the books of Pharoah Corporation follow: May 1, 2023 Dec. 31 Jan. 1, 2024 April 1 Dec. 31 4 Bonds payable with a par value of $700,000, which are dated January 2023, are sold at 109 plus accrued interest. They are coupon bonds, bear interest at 12% ( payable annually at January 1), and mature on January 1, 2033. (Use ar Adjusting entries are made to record the accrued interest on the bonds and the amortization of the proper amount o Interest on the bonds is paid. Par value bonds of $420,000 are repurchased at 105 plus accrued interest and are retired. (Bond premium is to be ar Adjusting entries are made to record the accrued interest on the bonds, and the proper amount Date (a) Assume that Pharoah follows ASPE. Prepare the journal entries for the transactions above. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is…
Problem 1 On January 1, 2020. Shrek Company purchased as a long-term investment P5,000,000 face value of Dunk Company's 8% bonds for P4,562,000. The bonds were purchased to yield 10% interest annually on December 31. The bonds mature on January 1, 2025. Shrek uses the effective interest method. What is the carrying amount of the investment (rounded to nearest P100) on December 31, 2021? a. 4,680,000 b. 4,662,000 C 4,618,000 d. 4,562,000 Problem 2-3 On January 1, 2016, Whistledown Company purchased 5-year bonds with face value of P8,000,000 and stated interest of 10% per year payable semiannually January 1 and July 1. The bonds were acquired to yield 8%. Present value of an annuity of 1 for 10 periods at 5% 7.72 Present value of an annuity of 1 for 10 periods at 4% Present value of 1 for 10 periods at 4% 8.11 0.6756 1. What is the purchase price of the bonds? a. 7,382,400 b. 8,617,600 C. 8,648,800 d. 7,351,200 2. What is the carrying amount of the bond investment on December 31, 2016?…
TOPICS: INVESTMENTS/DERIVATIVES On January 1, 2018, H Company purchased bondsfrom I CO. with face amount of P 3 500 000. Thebusiness model in managing the financial assets is tocollect contractual cash flow that are solely paymentsof principal and interest and also to sell the bonds inthe open market. The entity paid 3 680 250 for thebond investment.The bonds mature on December 31, 2020 and pay10% interest annually on December 31 each year with8% effective yield.The bonds are quoted at 95 on December 31, 2018 and90 on December 31, 2019. What is the carrying amount of the bondinvestment to be reported in December 31,2018? What is the unrealized gain or loss that shouldbe reported as component of othercomprehensive income in December 31,2018? What amount of interest income will bereported in December 31, 2019 What amount of cumulative unrealized gain orloss should be reported in the statement ofchanges in equity for 2019? Assume that H elected to value investments atmarket price. At…
Requirement 3. Prepare a comprehensive income statement for Thyme Investments for year ended December 31, 2018. Assume net income was $320,000. (Use a minus sign or parentheses to enter a loss.) 2018 Jan. 5 Purchased Vince Company's $525,000 bond at face value. Thyme classified the investment as available-for-sale. The Vince bond pays interest at the annual rate of 6% on June 30 and December 31 and matures on December 31, 2021 Management's intent is to keep the bonds for several years . June 30 Received an interest payment from Vince Dec.31 Received an interest payment from Vince. Dec.31 Adjusted the investment to its current market value of $518.500 .

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