Debit Fair Value Adjustment-Avalable for-Sale $14800, Credt Unrealtzed Gan-Equty. S14,800Carpark Services began operations in 20X1 and maintains investments in available for sale debt securites The year endcost and fair values for its portfolio of debt securities followsDebit Far Value Adjustment- Avalable-for-Sale S1,400, Creat Unreatred Loss-Equty $3,400, CeatUnrealzed Gain - Equty. S8.000Available for-Sale SecuritiesDecember 31, 20X1December 31, 20x2Fair Value$ 313,400$ 402,800Cost$ 310,000$ 388,000The yeor-end odjusting entry to record the unrealized gaintoss at December 31, 20X2 isDebit Unreaed Gan-Equity $14.800 Credit Far Value Acjustmert-Avatabie-for Sale $14s00Mutiple ChoiceDebit Far Value Adustment - Avalable-forSale S400, Creat Unrealzed Gan-Equity $1400Debit Fair Vaue Adustment-Available-for-Sale $14.800 Creait Unreaszed LOss-Equty S14 s00O O O

A journal entry is being used to record a business arrangement in a corporation's accounting…

Carpark Services began operations in 20X1 and mantans investments in avalate or sale debt securtes The yearend cost and fair values for its portfolio of debt securities follows Available for-Sale securities Cost $ 310,000 $ 388,000 Fair Vale $ 313,400 $ 402, Decenber 31, 20x1 Decenber 31, 20x2 The yeor end adjusting entry to record the unrealtzed gainvloss et December 31 202 Mutioe Choice

Carpark Services began operations in 20X1 and mantans investments in avalate or sale debt securtes The yearend cost and fair values for its portfolio of debt securities follows Available for-Sale securities Cost $ 310,000 $ 388,000 Fair Vale $ 313,400 $ 402, Decenber 31, 20x1 Decenber 31, 20x2 The yeor end adjusting entry to record the unrealtzed gainvloss et December 31 202 Mutioe Choice

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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Current Attempt in Progress On July 1, 2021, Swifty Satellites Corporation issued $1,400,000 of 10-year, 9% bonds to yield a market interest rate of 8%. The bonds pay semi-annual interest on July 1 and January 1. Swifty has a December 31 year end and records adjusting entries annually. Swifty received $1,495,137 when issuing the bonds. Click here to view the factor table. (a) Prepare an amortization table through January 1, 2023 (three interest periods) for this bond issue. (Round all amounts to the nearest dollar, e.g. 5,275.) SWIFTY SATELLITES CORPORATION Bond Premium Amortization Semi- annual interest Interest Expense to be Unamortized A 712 28 44 F10 FII 染, 000 F4 F9 F7 FB F5 F1 F2 F3
PART 1 Recording Entries for AFS Debt Securities— Effective Interest Method Adjust FVA at Year-End On July 1, 2020, West Company purchased for cash, twelve $10,000 bonds of North Corporation to yield 10%. The bonds pay 9% interest, payable on a semiannual basis each July 1 and January 1, and mature on July 1, 2023. The bonds are classified as AFS securities. The annual reporting period ends December 31. Assume the effective interest method of amortization of any discount or premium. Amortization Schedule - PART 1 Journal Entries and FS Presentation for 2020 - PART 1 Journal Entries for 2021 - PART 2 a. Prepare a bond amortization schedule for 2020 and 2021 using the effective interest method. Note: Round each amount entered into the schedule to the nearest whole dollar. Date StatedInterest MarketInterest DiscountAmortization BondAmortized Cost Jul. 1, 2020 Answer Jan. 1, 2021 Answer Answer Answer Answer Jul. 1, 2021 Answer Answer Answer Answer b.…
! Required information Problem 15-2A (Algo) Recording, adjusting, and reporting available-for-sale debt securities LO P3 [The following information applies to the questions displayed below.] Mead Incorporated began operations in Year 1. Following is a series of transactions and events involving its long-term debt investments in available-for-sale securities. Year 1 January 20 Purchased Johnson & Johnson bonds for $24,500. February 9 Purchased Sony notes for $59,040. June 12 Purchased Mattel bonds for $44,500. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $26,300; Sony, $49,750; and Mattel, $54,550. Year 2 April 15 Sold all of the Johnson & Johnson bonds for $27,500. July 5 Sold all of the Mattel bonds for $38,650. July 22 Purchased Sara Lee notes for $16,700. August 19 Purchased Kodak bonds for $18, 100. December 31 Fair values for debt in the portfolio are Kodak, $18,725; Sara Lee, $16,000; and Sony, $62,000. Year 3 February 27 Purchased Microsoft bonds for…
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etproctorio.com/secured Proctoring Enabled: FINAL EXAM Peuned Upda Help Seve &Ext Submit 24 On January 1, 2019, a company issued $400,200 of 10-year, 12% bonds. The Interest is payable semi-annually on June 30 and December 31. The Issue price was $413,553 based on a 10% market linterest rate. The effective-Interest method of amortization is used. What is the book value of the bond liability as of June 30, 2019 (to the nearest dollar)? 570 Multiple Choice $410,219. $400,200. $416,887. $403,534.
-k A 0 nces Smith Co.'s long-term available-for-sale portfolio at the start of this year consists of the following. Available for Sale Securities Cost $ 576,530 163,300 Fair Value $ 498,150 Company A bonds Company B notes 159,750 Company C bonds. 641,750 723,930 Smith enters into the following transactions involving its available-for-sale debt securities this year. January 29 July 6 November 13 Sold one-half of the notes of Company B for $80,940. Purchased bonds of Company X for $126,800. Purchased notes of Company 2 for $210,000. December 9 Sold all of the bonds of Company A for $564,999. Fair values at December 31 are: B, $83,300; C.$646,000; X, $119,000; and Z. $217,000. Requirement General Journal Fair Value Transaction Adjustment Analysis Prepare journal entries to record each of the transactions and events. Prepare the year-end adjustment to fair value, if a View transaction list General Ledger Journal entry worksheet < Trial Balance Note: Enter debits before credits. 5 Using the…
ASsignmentiMain.do?invoker=& takeAssignmentSessionLocator%3D&inprogress%-false rk eBook Calculator Print Item Compute Bond Proceeds, Amortizing Premium by Interest Method, and Interest Expense Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware Co. issued $90,000,000 of five-year, 12% bonds at a market (effective) interest rate of 10%, with interest payable semiannually. Compute the following: a. The amount of cash proceeds from the sale of the bonds. Use the tables of present values in Exhibit 8 and Exhibit 10. Round to the nearest dollar. b. The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar. C. The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. Round to the nearest dollar. d. The amount of the bond interest expense for the first year. Round to the nearest dollar. SHEET.A... SHEET KSHEET.A...…
Recording Entries for TS—Effective Interest Method Adjust FVA at Year-End On July 1, 2020, West Company purchased for cash, fifteen $10,000 bonds of North Corporation at a market rate of 6%. The bonds pay 5% interest, payable on a semiannual basis each July 1 and January 1, and mature on July 1, 2023. The bonds are classified as trading securities. The annual reporting period ends December 31. Assume the effective interest method of amortization of any discounts or premiums. Ignore income taxes. Amortization Schedule Journal Entries in 2020 Journal Entries in 2021 a. Prepare a bond amortization schedule for the life of the bonds using the effective interest method. Note: Round each amount entered into the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. Adjust market interest in the final year of the bond term for any net rounding difference. Date StatedInterest MarketInterest DiscountAmortization BondAmortized Cost Jul.…