Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments.
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aluing Trading Securities at Fair Value
On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $59,000, and the fair value was $60,400.
Prepare the December 31
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- don't give answer in image formatAnalyzing Bonds Payable and Debt Retirement The long-term liability disclosure note to the Year 2 annual report of Penguin Pilots Inc. included the following. December 31 ($ millions) Year 2 Year 1 6% Convertible senior debentures due Year 9 $185 $0 Additional assumptions: 1. Debentures were issued at par on January 1 in Year 2 and pay interest each December 31. 2. Debentures retired were scheduled to mature December 31, Year 9. 3. Assume instead that Alaska Air decides to retire the bonds at December 31 of Year 2, paying the fair value of the bonds, which reflected a yield rate of 5%. Required a. Prepare the December 31, Year 2, interest payment entry. • Note: Round your answers to the nearest million dollars. Date Dec. 31, Year 2 Interest Expense Bonds Payable To record interest payment Account Name b. Prepare the December 31, Year 2, bond retirement entry. • Note: Round your answers to the nearest million dollars. Date Dec. 31, Year 2 Bonds Payable Account Name Loss on Bond…pare.3
- Valuing Trading Securities at Fair Value On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $65,000, and the fair value was $66,700. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments.5Entries for issuing and calling bonds; loss Hoover Company, a wholesaler of music equipment, issued $6,510,000 of 25-year, 12% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. 20Y2 March 1 September 1 20Y4 September 1 If an amount box does not require an entry, leave it blank. Issued the bonds for cash at their face amount. Paid the interest on the bonds. Journalize the entries to record the above selected transactions. 20Y2 Mar. 1 Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.) Issued the bonds for cash at their face amount. 20Y2 Sept. 1 Paid the interest on the bonds. 20Y4 Sept. 1 Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.)
- BUSINESS ACCOUNTING On March 1, 2011, Fast Freight Company sold Rs. 400,000 of its 9 percent, 20-year bonds at 109.9. The semiannual interest payment dates are March 1 and September 1. The market interest rate is 8 percent. The firm's fiscal year ends August 31. Prepare entries in journal form to record the sale of the bonds on March 1, the accrual of interest and amortization of premium on August 31, and the first inferest payment September 1. Use the effective interest method to anmortize the premium. Expert Answer oEntries for issuing bonds and amortizing premium by straight-line method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $20,000,000 of 5-year, 9% bonds at a market (effective) interest rate payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 20Y1. If an amount box does not require an entry, leave it blank. Account Debit Credit Cash Premium on Bonds Payable Bonds Payable Feedback Me How Interest Expense Premium on Bonds Payable Cash Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal bond. Feedback b. Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for 6 months, using the straight-line method. If an amount box does not Account Debit Credit Check My Work 20,811,010…Entries for bond (held-to-maturity) investments The following bond investment transactions were completed by Starks Company: Jan. 31 Purchased 39, $1,000 government bonds at 100 plus accrued interest of $195 (1 month). The bonds pay 6% annual interest on July 1 and January 1. July 1 Received semiannual interest on bond investment. Aug. 30 Sold 15, $1,000 bonds at 97 plus $150 accrued interest (2 months). a. Journalize the entries for these transactions. Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Jan. 31 Investments-Government Bonds Interest Receivable Cash July 1 Cash Interest Receivable Interest Revenue Aug. 30 Cash Sale of Investments Interest Revenue InvestmentsInvestments-Government Bonds b. Journalize the December 31 adjusting entry for semiannual interest…
- Tamarisk Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. F-b. 1.2025 July 1 (a) (5) Sharapova Company common stock, $100 par, 200 shares U.S. government bonds, 11%, due April 1, 2035, interest payable April 1 and October 1, 108 bonds of 31000 par cách McGrath Company 12% bonds, par $54,100, dated March 1, 2025, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2045 Your answer is partially correct. Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2025, using the straight-line method. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Ifna entry is required, select "No Entry for the account titles and enter Ofor the amounts. Round answers to 0 decimal places. 5.19251 Date Account Titles and…Bond (held-to-maturity) investments The following bond investment transactions were completed by Starks Company: Jan. 31. Purchased $90,000 government bonds as a held-to-maturity investment at 100 plus accrued interest for 1 month. The bonds pay 7% annual interest on July 1 and January 1. July 1. Received semiannual interest on bond investment. Aug. 30. Sold $24,000 bonds at 99 plus accrued interest for 2 months. a. Journalize the entries for the preceding transactions. If an amount box does not require an entry, leave it blank. Jan. 31 Investments-Government Bonds July 1 Interest Receivable Cash Cash Interest Receivable Interest Revenue Aug. 30 Cash Loss on Sale of Investments Interest Revenue Investments-Government Bonds 90,000 525 3,150 24,240 X 285 X 90,525 525 2,625 525 X 24,000Liability and Equity Classification Select from the option list provided the appropriate balance sheet classification for each balance sheet item below. Each choice may be used once, more than once, or not at all. Balance sheet item Classification 1. Preferred stock 2. Trade accounts payable 3. Bonds payable (due in 15 years) 4. Note payable (due in 7 months) 5. Direct costs of issuing common stock 6. Treasury stock (at cost) 7. Appropriation for contingencies 8. Common stock subscriptions receivable 9. Discount on bonds payable 10. Bonds payable issue costs Choices: Retained earnings. Capital stock. Noncurrent liabilities. Other classification. Current liabilities. Additional paid-in capital.
