E16.11 (LO 3), AP On December 31, 2022, available-for-sale debt securities for Storrer, Inc. are as follows. The securities are considered to be long-term investments. Security A B C Cost $17,500 12,500 23,000 $53,000 Fair Value $16,000 14,000 21,000 $51,000 Instructions Prepare the adjusting entry on December 31, 2022, to report the securities at fair value. Show the statement presentation on December 31, 2022, after adjustment to fair value. E. Kretsinger, a member of the board of directors, does not understand the reporting of the unrealized gains or losses. Write a letter to Ms. Kretsinger explaining the reporting and the purposes that it serves. Prepare to adjust entries for fair value, and indicate statement presentation for two classes of securities. <>

E16.11 (LO 3), AP On December 31, 2022, available-for-sale debt securities for Storrer, Inc. are as follows. The securities are considered to be long-term investments. Security A B C Cost $17,500 12,500 23,000 $53,000 Fair Value $16,000 14,000 21,000 $51,000 Instructions Prepare the adjusting entry on December 31, 2022, to report the securities at fair value. Show the statement presentation on December 31, 2022, after adjustment to fair value. E. Kretsinger, a member of the board of directors, does not understand the reporting of the unrealized gains or losses. Write a letter to Ms. Kretsinger explaining the reporting and the purposes that it serves. Prepare to adjust entries for fair value, and indicate statement presentation for two classes of securities. <>

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Hh3.
N6. Account
A8
If the bonds are retired on January 1, 2021, at 103, what will SIGE NA report as a loss on redemption? *see attached a. P 250,000b. P 365,000c. P 400,000d. P 425,000
On January 1, 2019, Assarain Concrete issued bonds with a face value of OMR 100,000 at 97, due in January 1, 2029. On January 1, 2025, the entire issue was retired at 100 and cancelled. How much is the gain or loss from retirement of bonds? a. Loss RO 900 b. Loss RO 1,200 c. Gain RO 1,200 d. Gain RO 900
Gadubhai
On March 31, 2021, Gardner Corporation received authorization to issue $50,000 of 9 percent, 30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue was dated March 31, 2021, but the bonds were not issued until April 30, 2021. They were issued at face value. a. Prepare the journal entry at April 30, 2021, to record the sale of the bonds. b. Prepare the journal entry at September 30, 2021, to record the semiannual bond interest payment. c. Prepare the adjusting entry at December 31, 2021, to record bond interest expense accrued since September 30, 2021. (Assume that no monthly adjusting entries to accrue interest expense had been made prior Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
OurNewCO sold its Boring bond (AFS) for its fair value, $900,000) January 1, 2021. The balances from 12/31/2020 are follows: CASH REVENUE АMORT CV 885301 6/30/2020 50,000 53118.06 3,118 888,419 12/31/2020 50,000 53305.14 3,305 891,724 On 12/31/2020 the FV adjustment account had a debit balance of $8276. The face amount of the Boring Bonds is $1,000,000. Write out the journal entries needed to record this sale. Then complete the statements below.
8. On January 1,2020, Care Company purchased Bay Cormpany's 9% bonds with a face amount of P4000,000 for P3,756000 to yield to 10%. The bonds are dated Jonvary 1,2020,mature on December 31,2029, and pay interest annualy on December 31. Care uses the interest method. Whatamount should Care report as interest revenve for 20207 Q. 400,000 b. 344,400 C. 360,000 d. 375,600 purchosed P5.000.000 foce omount.8% bonoS of
P16.1 (LO 1) (Debt Securities) Presented below is an amortization schedule related to Spangler Company's 5-year, $100,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2023, for $108,660. Date Cash Received 12/31/23 12/31/24 $7,000 12/31/25 7,000 12/31/26 7,000 12/31/27 12/31/28 7,000 7,000 Interest Revenue $5,433 5,354 5,272 5,186 5,095 Bond Premium Amortization The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end. Instructions Amortized cost Fair value 12/31/24 $107,093 106,500 12/31/25 $105,447 107,500 $1,567 1,646 1,728 1,814 1,905 Carrying Amount of Bonds $108,660 107,093 105,447 103,719 101,905 100,000 12/31/26 $103,719 105,650 12/31/27 $101,905 103,000 a. Prepare the journal entry to record the purchase of these bonds on December 31, 2023, assuming the bonds are classified as held-to-maturity securities. b. Prepare the journal entry (entries) related to the held-to-maturity bonds for 2024. c. Prepare…
Dixon Corp issued 5,000, 9%, 5-year, P1,000 bonds dated January 1, 2020, at P100 1. Prepare the journal entry to record the sale of these bonds on January 1, 2020, 2. Prepare the adjusting journal entry on December 31, 2020, to record interest expense. 3. Prepare the journal entry on January 1, 2021, to record interest paid.
1