Exercise 14-30 (Algo) Reporting bonds at fair value [LO14-6] On January 1, 2024, Rapid Airlines issued $260 million of its 10% bonds for $240 million. • The bonds were priced to yield 12%. • Interest is payable semiannually on June 30 and December 31. ● Rapid Airlines records interest at the effective rate and elected the option to report these bonds at their fair value. • On December 31, 2024, the fair value of the bonds was $249 million as determined by their market value in the over-the-counter market. Rapid determined that $1,000,000 of the increase in fair value was due to a decline in general interest rates. Required: 1. to 3. Prepare the journal entries to record interest on June 30, 2024 (the first interest payment), on December 31, interest payment) and to adjust the bonds to their fair value for presentation in the December 31, 2024, balance sheet. · Note: Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 Record interest on June 30, 2024 (the first interest payment). Note: Enter debits before credits. 024 (the second

Exercise 14-30 (Algo) Reporting bonds at fair value [LO14-6] On January 1, 2024, Rapid Airlines issued $260 million of its 10% bonds for $240 million. • The bonds were priced to yield 12%. • Interest is payable semiannually on June 30 and December 31. ● Rapid Airlines records interest at the effective rate and elected the option to report these bonds at their fair value. • On December 31, 2024, the fair value of the bonds was $249 million as determined by their market value in the over-the-counter market. Rapid determined that $1,000,000 of the increase in fair value was due to a decline in general interest rates. Required: 1. to 3. Prepare the journal entries to record interest on June 30, 2024 (the first interest payment), on December 31, interest payment) and to adjust the bonds to their fair value for presentation in the December 31, 2024, balance sheet. · Note: Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 Record interest on June 30, 2024 (the first interest payment). Note: Enter debits before credits. 024 (the second

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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what are the solutions for questions 4 & 5?
On January 1, 2025, Blossom Company has the following defined benefit pension plan balances. Projected benefit obligation $4,454,000 Fair value of plan assets 4,140,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2026, the company amends its pension agreement so that prior service costs of $509,000 are created. Other data related to the pension plan are as follows. 2025 2026 Service cost $149,000 $177,000 Prior service cost amortization -0- 92,000 Contributions (funding) to the plan 237,000 283,000 Benefits paid 196,000 274,000 Actual return on plan assets 248,400 260,000 Expected rate of return on assets 6% 8% (a) Prepare a pension worksheet for the pension plan for 2025 and 2026. (Enter all amounts as positive.) BLOSSOM COMPANY Pension Worksheet-2025 and 2026 General Journal Entries OCI-Prior Service Cost OCI-Gain/ Pel Loss
how do you get the last part? (number 5)