C. Current Attempt in Progress The following Espresso Corporation transactions are for bonds that were purchased as a trading investment for the year ended December 31, 2021: Feb. 1 Purchased $228,000 of Leslye Corporation 3% bonds at 106 (this means 106% of maturity value). Interest is received semi-annually on August 1 and February 1. The bonds mature on February 1, 2023. Received interest on Leslye bonds. Sold $91,200 of the Leslye bonds at 102. Accrued interest on the remaining bonds. The fair value of the remaining bonds was 100 on this date. Aug. 1 Dec. 31 2 31 Show Transcribed Text Feb. 1 Aug. 1 ug. 2 Dec. 31 Trading Investments Cash Cash Interest Income Cash Realized Loss on Trading Investments Trading Investments Interest Receivable Interest Income J 241680 3420 93024 3648 1710 241680 3420 1711 96672 1710
C. Current Attempt in Progress The following Espresso Corporation transactions are for bonds that were purchased as a trading investment for the year ended December 31, 2021: Feb. 1 Purchased $228,000 of Leslye Corporation 3% bonds at 106 (this means 106% of maturity value). Interest is received semi-annually on August 1 and February 1. The bonds mature on February 1, 2023. Received interest on Leslye bonds. Sold $91,200 of the Leslye bonds at 102. Accrued interest on the remaining bonds. The fair value of the remaining bonds was 100 on this date. Aug. 1 Dec. 31 2 31 Show Transcribed Text Feb. 1 Aug. 1 ug. 2 Dec. 31 Trading Investments Cash Cash Interest Income Cash Realized Loss on Trading Investments Trading Investments Interest Receivable Interest Income J 241680 3420 93024 3648 1710 241680 3420 1711 96672 1710
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 4E
Related questions
Question
Please explain proper steps by Step and Do Not Give Solution In Image Format ? And Fast Answering Please ?
![Current Attempt in Progress
2
The following Espresso Corporation transactions are for bonds that were purchased as a trading investment for the year ended
December 31, 2021:
Feb. 1 Purchased $228,000 of Leslye Corporation 3% bonds at 106 (this means 106% of maturity value).
Interest is received semi-annually on August 1 and February 1. The bonds mature on February 1, 2023.
Received interest on Leslye bonds.
Sold $91,200 of the Leslye bonds at 102.
Accrued interest on the remaining bonds.
The fair value of the remaining bonds was 100 on this date.
Aug. 1
Dec. 31
Show Transcribed Text
2
31
Feb. 1
Aug. 1
ug. 2
Dec. 31
Trading Investments
Cash
Cash
Interest Income
Cash
Realized Loss on Trading Investments
Trading Investments
Interest Receivable
Interest Income
J
241680
3420
93024
3648
1710
241680
3420
1001
96672
1710](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a0d09e1-1dd0-4be7-9867-3de7f07d39b9%2Ff883ec6d-de61-4d31-8da3-31c91501d4e0%2Fe8pw1kp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Current Attempt in Progress
2
The following Espresso Corporation transactions are for bonds that were purchased as a trading investment for the year ended
December 31, 2021:
Feb. 1 Purchased $228,000 of Leslye Corporation 3% bonds at 106 (this means 106% of maturity value).
Interest is received semi-annually on August 1 and February 1. The bonds mature on February 1, 2023.
Received interest on Leslye bonds.
Sold $91,200 of the Leslye bonds at 102.
Accrued interest on the remaining bonds.
The fair value of the remaining bonds was 100 on this date.
Aug. 1
Dec. 31
Show Transcribed Text
2
31
Feb. 1
Aug. 1
ug. 2
Dec. 31
Trading Investments
Cash
Cash
Interest Income
Cash
Realized Loss on Trading Investments
Trading Investments
Interest Receivable
Interest Income
J
241680
3420
93024
3648
1710
241680
3420
1001
96672
1710
![Dec. 31
Dec. 31
Interest Receivable
Interest Income
(To record accrued interest of remaining bonds)
Unrealized Loss on Trading Investments
Trading Investments
in
(To record fair value of remaining bonds)
Show Transcribed Text
Other Income and Expenses
Dividends Receivable
Realized Gain on Trading Investments
Determine the balance in each of the income statement accounts that are affected in the transactions above and indicate how
they would be presented on the income statement for the year ended December 31, 2021. (Round answers to O decimal places, e.g.
5,250. Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
ESPRESSO CORPORATION
Statement of Income (Partial)
For the Year Ended December 31, 2021
1710
$
8208
1710
$
8208](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a0d09e1-1dd0-4be7-9867-3de7f07d39b9%2Ff883ec6d-de61-4d31-8da3-31c91501d4e0%2F0rsoojf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Dec. 31
Dec. 31
Interest Receivable
Interest Income
(To record accrued interest of remaining bonds)
Unrealized Loss on Trading Investments
Trading Investments
in
(To record fair value of remaining bonds)
Show Transcribed Text
Other Income and Expenses
Dividends Receivable
Realized Gain on Trading Investments
Determine the balance in each of the income statement accounts that are affected in the transactions above and indicate how
they would be presented on the income statement for the year ended December 31, 2021. (Round answers to O decimal places, e.g.
5,250. Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
ESPRESSO CORPORATION
Statement of Income (Partial)
For the Year Ended December 31, 2021
1710
$
8208
1710
$
8208
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