Company maintained a large investment in debt securities valued at approximately $ 42 billion as of the begining of the year. During the year, the debt securities produced investment income (interest income) totaling $2.5 billion. At the year-end, the portfolio of debt securities had appreciated to $45.5 billion. Please prepare the journal entries to record the year-end adjusting entries assuming that the debt portfolio is Clasified as trading securities and Clasified as available-for-sale securities and prepare the journal entry to record the interest earned (assume all interest is collected)

Q: On January 1, 2016, a company's balance sheet reports its investments in debt securities as follows:…

A: Investment in Debt Securities: The owners of financial instruments referred to as debt securities…

Q: Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term…

A: Bonds: Bonds indicate fixed-income financial instruments issued by Corporates, any government, and…

Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

A: Solution 1-                                                                           Journal…

Q: Grocery Corporation received $300,328 for 11 percent bonds issued on January 1, 2015, at a market…

A: Table presentation of each account Account (a) Financial Statement (b) Issuance (c ) Interest…

Q: On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable…

A: The bonds are the financial instruments that are used to raise money from the market or investors.

Q: epare the statement of financial position for 1,500 bonds with $1,000 face value, which the market…

A:

Q: Liab. + Equity Rev. − Exp. = Net Inc. A. NA = NA

A: If company bonds mature, then the cash and bond liability decrease by 50000. In statement cash flow…

Q: General Journal for the following: The following transactions were completed by Winklevoss Inc.,…

A: Bonds Payable: Bonds payable are the liabilities that need to be settled after maturity with…

Q: Crane Company issued $740,000, 10-year, 5% bonds at 103.   Suppose the remaining Premium on Bonds…

A: Balance sheet is the financial statement of the business which shows the details of assets and…

Q: On October 1, Qilan Ltd. purchased 7% bonds with a face value of $1,000 for trading purposes,…

A: As you have asked multiple sub-parts we can solve only first three sub-parts for you please repost…

Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

A: Year1       July        1   Cash                                       $69,552,279…

Q: At December 31, 2018, Charlotte Company has an equity portfolio valued at $160,000. Its cost was…

A: Date Account Titles and Explanation Debit Credit December 31, 2018 Fair Value Adjustment $20,000…

Q: Metlock Corporation has the following trading portfolio of debt investments as Security Cost A…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: Prepare Natura Company's journal entries to record the following transactions involving its…

A: Journal entries are prepared by adhering to the guidelines of double-entry bookkeeping. Thus, every…

Q: the current fiscal year (for the issuer’s books):   (a) Issuance of the bonds. (b) First annual…

A: No. Particulars  Debit Credit a         Cash 2125000     Premium on bonds payable   125000…

Q: Grocery Corporation received $300,652 for 12.50 percent bonds issued on January 1, 2018, at a market…

A: The bonds are issued to raise the money from the market or investors. The bonds are issued at…

Q: Prepare Natura Company’s journal entries to record the following transactions involving its…

A: Short-term investments are financial assets that may readily be converted to cash, often within a…

Q: Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $400 million on July…

A: Journal Entries at the time of issuance of bonds: Date    Account title Debit Credit July 1.…

Q: Prepare Natura Company's journal entries to record the following transactions involving its…

A: Introduction: - Journal entry is the first stage of accounting process. Journal entry used to record…

Q: On January 1, 20X1, Nicks Corporation issued $250 million of floating-rate debt. The debt carries a…

A: The objective of the question is to understand how to record the issuance of bonds and calculate the…

Q: On January 1, 2020, Grouper Corporation issued $480,000 of 7% bonds, due in 10 years. The bonds were…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

Q: rnalize the entry to record the amount of rnalize the entries to record the following The first…

A: The answers have been mentioned below.

Q: On July 1, Year 1, Khatri Industries Inc. issued $18,000,000 of 10-year, 5% bonds at a market…

A: Introduction Bonds issued with discount: Bonds are financial instrument which represents company’s…

Q: In footnotes to its year-end annual report, Bancfirst Corp. reported that held-to-maturity debt…

A: The question is related to held to maturity debt securities. Held-to-maturity (HTM) securities are…

Q: Kier Company issued $740,000 in bonds on January 1, Year 1. The bonds were issued at face value and…

A: Interest expense is the amount which is paid on the bonds or debentures as a return. It is an…

Q: Prepare journal entries to record the following transactions relating to long-term bonds of…

A: In any company's records, a journal entry serves as a record of a commercial transaction. Every…

Q: vere reported at $69091655. Blossom issued a new note payable for cash during the year. T value of…

A: A financial metric called the debt-to-asset ratio indicates what percentage of a company's total…

Q: The following transactions were completed by Montague Inc., whose fiscal year is the calendar year:…

A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…

Q: Ticker Services began operations in Year 1 and holds long-term investments in available-for-sale…

A: Debt Investment: Debt investment is the broad term for taking on a sizable amount of borrowing plus…

Q: vith a note payable of 14% in pany uses the accounting pe 7 basis

A: Given as, Short term debt= 65,000 for 5 months period.

Q: Prepare Natura Company's journal entries to record the following transactions involving its…

A: Short-term investments are financial assets that may readily be converted to cash, often within a…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.