BE17.4 - Using Excel to Prepare Entries for Debt Investments PROBLEM Hendricks Corporation purchased trading investment bonds at par. Student Work Area Required: Provide input into cells shaded in yellow in this template. Use cell references to the Problem area, with mathematical formulas to calculate any amounts not given. Purchase price of bonds $ 50,000 The following data was provided by Hendricks at December 31. Prepare Hendricks' joumal entries for: (a) The purchase of the investment (b) The interest received (c) The fair value adjustment Annual interest received $ 2,000 Fair value of the bonds 47,400 A zero balance exists in the Fair Value Adjustment account before the above activity. Debit Credit (а) Debt investments 50,000 Cash 50.000
BE17.4 - Using Excel to Prepare Entries for Debt Investments PROBLEM Hendricks Corporation purchased trading investment bonds at par. Student Work Area Required: Provide input into cells shaded in yellow in this template. Use cell references to the Problem area, with mathematical formulas to calculate any amounts not given. Purchase price of bonds $ 50,000 The following data was provided by Hendricks at December 31. Prepare Hendricks' joumal entries for: (a) The purchase of the investment (b) The interest received (c) The fair value adjustment Annual interest received $ 2,000 Fair value of the bonds 47,400 A zero balance exists in the Fair Value Adjustment account before the above activity. Debit Credit (а) Debt investments 50,000 Cash 50.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
So the accounts are right, but the numbers are wrong.

Transcribed Image Text:Formula: Subtract; Cell Referencing
BE17.4 - Using Excel to Prepare Entries for Debt Investments
PROBLEM
Student Work Area
Required: Provide input into cells shaded in yellow in this template. Use cell
references to the Problem area, with mathematical formulas to calculate any
amounts not given.
Hendricks Corporation purchased trading investment bonds at par.
Purchase price of bonds
$ 50,000
The following data was provided by Hendricks at December 31.
Prepare Hendricks' journal entries for:
(a) The purchase of the investment
(b) The interest received
(c) The fair value adjustment
$ 2,000
47,400
1
Annual interest received
Fair value of the bonds
4 A zero balance exists in the Fair Value Adjustment account before
5 the above activity.
Debit
Credit
(а)
Debt investments
50,000
Cash
50,000
(b) Cash
2,000
Interest Revenue
2,000
1
(c)
Unrealized Holding Gain or Loss-Income
2,600
Fair Value Adjustment
2,600
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education