Homework Help is Here – Start Your Trial Now!
Business
Accounting
Cullumber Carecenters Inc. provides financing and capital to the healthcare industry, with a particular focus on nursing homes for the elderly. The following selected transactions relate to bonds acquired as an investment by Cullumber, whose fiscal year ends on December 31. 2022 Purchased at face value $1,089,000 of Javier Nursing Centers, Inc., 10-year, 5% bonds dated January 1, 2022, directly from Javier. Jan. 1 Dec. 31 Accrual of interest at year-end on the Javier bonds. Assume that all intervening transactions and adjustments have been properly recorded and the number of bonds owned has not changed from December 31, 2022, to December 31. 2024. 2025 Jan. 1 Received the annual interest on the Javier bonds. Jan. 1 Sold $544,500 Javier bonds at 107. Dec. 31 Accrual of interest at year-end on the Javier bonds. Date Account Titles and Explanation Debit Credit 2022 Debt Investments 1,089.000 Cash 1,089,000 31. 2022 : Interest Receivable 54.450 Interest Revenue 54,450 2025 : Cash 54,450 Interest Receivable 54,450 (To record the receipt of annual interest on Javier bonds) 2025 : Cash 582,615 Debt Investments 544,500 Gain on Sale of Debt Investments 38,115 (To record the sale of Javier bonds) 31, 2025 : Interest Receivable 27,225 Interest Revenue 27,225 - Your answer is partially correct. Assume that the fair value of the bonds at December 31, 2022, was $1,197,900. These bonds are classified as available-for- sale securities. Prepare the adjusting entry to record these bonds at fair value. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit ec. 31, 2022 Fair Value Adjustment-Available for-Sale 54450 Unrealized Gain or Loss-Equity 54450

Cullumber Carecenters Inc. provides financing and capital to the healthcare industry, with a particular focus on nursing homes for the elderly. The following selected transactions relate to bonds acquired as an investment by Cullumber, whose fiscal year ends on December 31. 2022 Purchased at face value $1,089,000 of Javier Nursing Centers, Inc., 10-year, 5% bonds dated January 1, 2022, directly from Javier. Jan. 1 Dec. 31 Accrual of interest at year-end on the Javier bonds. Assume that all intervening transactions and adjustments have been properly recorded and the number of bonds owned has not changed from December 31, 2022, to December 31. 2024. 2025 Jan. 1 Received the annual interest on the Javier bonds. Jan. 1 Sold $544,500 Javier bonds at 107. Dec. 31 Accrual of interest at year-end on the Javier bonds. Date Account Titles and Explanation Debit Credit 2022 Debt Investments 1,089.000 Cash 1,089,000 31. 2022 : Interest Receivable 54.450 Interest Revenue 54,450 2025 : Cash 54,450 Interest Receivable 54,450 (To record the receipt of annual interest on Javier bonds) 2025 : Cash 582,615 Debt Investments 544,500 Gain on Sale of Debt Investments 38,115 (To record the sale of Javier bonds) 31, 2025 : Interest Receivable 27,225 Interest Revenue 27,225 - Your answer is partially correct. Assume that the fair value of the bonds at December 31, 2022, was $1,197,900. These bonds are classified as available-for- sale securities. Prepare the adjusting entry to record these bonds at fair value. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit ec. 31, 2022 Fair Value Adjustment-Available for-Sale 54450 Unrealized Gain or Loss-Equity 54450

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Accounting Cullumber Carecenters Inc. provides financing and capital to the healthcare industry, with a particular focus on nursing homes for the elderly. The following selected transactions relate to bonds acquired as an investment by Cullumber, whose fiscal year ends on December 31. 2022 Jan. 1 Purchased at face value $1,089,000 of Javier Nursing Centers, Inc., 10-year, 5% bonds dated January 1, 2022, directly from Javier. Dec. 31 Accrual of interest at year-end on the Javier bonds. Assume that all intervening transactions and adjustments have been properly recorded and the number of bonds owned has not changed from December 31, 2022, to December 31, 2024. 2025 Jan. 1 Received the annual interest on the Javier bonds. Jan. 1 Sold $544,500 Javier bonds at 107. Dec. 31 Accrual of interest at year-end on the Javier bonds. Date Account Titles and Explanation Debit Credit 2022 + Debt Investments 1,089,000 Cash 1,089,000 31, 2022 Interest Receivable 54,450 Interest Revenue 54,450 2025 Cash 54,450 Interest Receivable 54,450 (To record the receipt of annual interest on Javier bonds) 2025 : Cash 582,615 Debt Investments 544,500 Gain on Sale of Debt Investments 38,115 (To record the sale of Javier bonds) 31, 2025 Interest Receivable 27,225 Interest Revenue 27,225 Your answer is partially correct. Assume that the fair value of the bonds at December 31, 2022, was $1,197,900. These bonds are classified as available-for- sale securities. Prepare the adjusting entry to record these bonds at fair value. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit ec. 31, 2022 Fair Value Adjustment-Available-for-Sale 54450 Unrealized Gain or Loss-Equity 54450
Transcribed Image Text:Accounting Cullumber Carecenters Inc. provides financing and capital to the healthcare industry, with a particular focus on nursing homes for the elderly. The following selected transactions relate to bonds acquired as an investment by Cullumber, whose fiscal year ends on December 31. 2022 Jan. 1 Purchased at face value $1,089,000 of Javier Nursing Centers, Inc., 10-year, 5% bonds dated January 1, 2022, directly from Javier. Dec. 31 Accrual of interest at year-end on the Javier bonds. Assume that all intervening transactions and adjustments have been properly recorded and the number of bonds owned has not changed from December 31, 2022, to December 31, 2024. 2025 Jan. 1 Received the annual interest on the Javier bonds. Jan. 1 Sold $544,500 Javier bonds at 107. Dec. 31 Accrual of interest at year-end on the Javier bonds. Date Account Titles and Explanation Debit Credit 2022 + Debt Investments 1,089,000 Cash 1,089,000 31, 2022 Interest Receivable 54,450 Interest Revenue 54,450 2025 Cash 54,450 Interest Receivable 54,450 (To record the receipt of annual interest on Javier bonds) 2025 : Cash 582,615 Debt Investments 544,500 Gain on Sale of Debt Investments 38,115 (To record the sale of Javier bonds) 31, 2025 Interest Receivable 27,225 Interest Revenue 27,225 Your answer is partially correct. Assume that the fair value of the bonds at December 31, 2022, was $1,197,900. These bonds are classified as available-for- sale securities. Prepare the adjusting entry to record these bonds at fair value. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit ec. 31, 2022 Fair Value Adjustment-Available-for-Sale 54450 Unrealized Gain or Loss-Equity 54450
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Financial Instruments
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS