14. Open Skies purchased a portfolio of available-for-sale securities during the year. The cost and fair value of the portfolio is as follows: Name Eden Rock Blue Creek First Stone Total Number of Shares 100 400 450 Total Cost $3,000 $6,500 $5,400 $14,900 Total Fair Value $4,800 $5,800 $6,750 $17,350 a. Make the journal entry to record the adjustment of available-for-sale security portfolio to fair value on December 31;

14. Open Skies purchased a portfolio of available-for-sale securities during the year. The cost and fair value of the portfolio is as follows: Name Eden Rock Blue Creek First Stone Total Number of Shares 100 400 450 Total Cost $3,000 $6,500 $5,400 $14,900 Total Fair Value $4,800 $5,800 $6,750 $17,350 a. Make the journal entry to record the adjustment of available-for-sale security portfolio to fair value on December 31;

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On 1 July 2018 MalekaLtd issues $6million in six-year debentures that pay interest each six months at a coupon rate of 8 per cent. At the timeof issuing the securities, the investors requiredrate of return was 6 per cent. Interest expense is determined using the effective-interest method. REQUIRED (i)Determine the issue price of the debenture (ii)Will thedebenture be issued at premium or discount?Why? (iii)Provide the journal entries at:1 July 2018, 30 June 2019, & 30 June 2020.
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