the equity method. Description Debit ce Corp. bonds have a fair value of $253,630 on December 31, 20Y5. Valuation Allo Sale Investments had a balance of zero on January 1. 20Y5.
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A: Redemption value of Bonds = $952,000 * 102% Redemption value of Bonds = $971,040 Premium on Bonds…
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A: Unrealized gain / (loss) on investment = Fair value - Cost - Debit Balance of FV Adj. account +…
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A: The objective of this question is to calculate the gain or loss on redemption of bonds. The company…
Q: A $296,000 bond was redeemed at 103 when the carrying amount of the bond was $307,544. The entry to…
A: Solution: Redemption amount of bond = $296,000*103% = $304,880 Carrying amount of bond = $307,544
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A: Amount paid on redemption = Face value of bonds x redemption price /100 = $880,000 x 102/100 =…
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A: Assumed Bonds has a face value = 100 Bonds Payable has a balance = 867000 Number of Bonds =…
Q: A $276,000 bond was redeemed at 98 when the carrying amount of the bond was $269,100. The entry to…
A: Solution:- Introduction:- The following data given as follows:- Bond = $276,000 redeemed at = 98…
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A: Proceeds from redemption = $294,000 * 98/100 = $288,120
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A: Lets understand the basics. For calculating gain/loss on redemption of carrying value of bond, we…
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A:
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A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
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A: Redemption of bond payable refers to the process by which a company or issuer repurchases and…
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Q: end. What should be the balance of the Fair on Bonds Payable? Show Value Adjustment your work.
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A: Step 1: Calculate the carrying amount of bonds payable on the redemption rate.
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Q: Bonds Payable has a balance of $909,000 and Premium on Bonds Payable has a balance of $9,999. If the…
A: Option d is the answer.
Q: he entry to record the redemption would include a
A: The correct option is: d.gain on bond redemption of $12,240. Gain on bond redemption is calculated…
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- Crane Limited had $2.39 million of bonds payable outstanding and the unamortized premium for these bonds amounted to $44,600. Each $1,000 bond was convertible into 20 preferred shares. All bonds were then converted into preferred shares. The Contributed Surplus - Conversion Rights account had a balance of $21,500. Assume that the company follows IFRS. a. Assuming that the book value method was used, what entry would be made? Account Titles and Explanation Debit Credit b. Assume that Crane Ltd. offers $9,000 to induce early conversion. What journal entry would be made? Account Titles and Explanation Debit CreditBanaba Company had the following transactions in bond investment held as trading for the current year. Mar.1 Purchased 1,000 P1,000, 12% bonds of Lander Company at 90 excluding accrued interest. Interest is payable on February 1 and August 1. Apr. 1 Purchased 3,000, P1,000, 12% bonds of Narita Corporation at 92 plus accrued interest. Interest is payable March 1 and September 1. Oct. 1 Sold 500 of Narita bonds at 102 excluding accrued interest. Dec. 1 Sold all of the Lander bonds at 95 plus accrued interest 31 The market value of the Narita bonds is 90. Required; Prepare journal entries to record the transactions including receipt and accrued interest.Do not give solution in image
- On September 1, Indigo Corporation had the following investments classified as held for trading purposes: $71,000,6% FMC Co, bond, purchased previously by indigo at 101. Interest on the bond is payable semi-annually on January 1 and July 13 $130,000 3% Government of Canada bond, previously purchased by indigo at 98. interest on the bond is payable semi-annually on March 31, and September 30. During the month of September, the following transactions took places Sept. 1: Sept. 30 Sept. 30 Sept. 30 Purchased $63,000 4% Alpha inc. bond at 99. Interest is payable annually on August 31. Received interest on Government of Canada bond. Data Sold the Government of Canada bond at 97. Fair value on FMC Co. bond is $74,550 and fair value of Alpha Inc. bond is $61,740. Record the transactions that occurred in September and prepare any adjusting entries required at September 30. indigo Corporation is a public company and has a September 30 year end. (Credit account titles are automatically indented…Pharoah Company had the following transactions pertaining to debt securities held as an investment. Jan. 1 Dec. 31 Purchased 75, 6%, $1,000 Sheridan Company bonds for $75,000 cash. Interest is payable annually on January 1. Accrued $4,500 annual interest on Sheridan Company bonds. Journalize the purchase and the receipt of interest. Assume no interest has been accrued. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 1 Debt Investments Cash Dec. 31 Interest Receivable Interest Revenue Debit 75,000 4,500 Credit 75,000 4,500The following information relates to the debt securities investments of Sunland Company. 1. On February 1, the company purchased 10% bonds of Gibbons Co. having a par value of $324,000 at 100 plus accrued interest. Interest is payable April 1 and October 1. 2. On April 1, semiannual interest is received. 3. On July 1, 9% bonds of Sampson, Inc. were purchased. These bonds with a par value of $186,000 were purchased at 100 plus accrued interest. Interest dates are June 1 and December 1. 4. On September 1, bonds with a par value of $60,000, purchased on February 1, are sold at 99 plus accrued interest. 5. On October 1, semiannual interest is received. 6. On December 1, semiannual interest is received. 7. On December 31, the fair value of the bonds purchased February 1 and July 1 are 95 and 93, respectively. (a)Prepare any journal entries you consider necessary, including year-end entries (December 31), assuming these are available-for-sale securities.…
- The following selected information are made available by AAA company for the current year: Accounts Payable120,000 Bonds Payable 800,000 Warranty payable200,000 Total Liabilities1,300,000 Net Sales1,650,000 Total Assets2,200,000 In the common size statement of financial position, prepaid expense will have a proportional percentage of bonds payable? The total Noncurrent asset of CAM Company is P1,000,000 and the Equity is 1,200,000. The company has no liabilities during the period. If cash and cash equivalent is 500,000, what will be its proportional percentage in the common-size statement of financial position?On January 1, Year 1, Peanut Limited has invested in equity and debt securities and recorded as "investment". Its investment portfolio for the year ended December 31, Year 1 is in the following table. Almond Реcan Walnut Type of security Equity Trading $12,000 $16,000 Equity Debt Classification AFS HTM $24,000 $22,000 $36,000 $40,000 Cost Market value as of Dec 31, Year 1 All securities were obtained at par value. Debt security of Walnut pays coupon annually at the rate of 5%. During year 1, Peanut has received dividend from Almont and Pecan at the amount of $1,500 and $900, respectively. 10.Determine investment account shown in Peanut's balance sheet as of December 31, Year 1. 11.Determine related item(s) in Peanut's income statement for the year ended December 31, Year 1. Item(s) Amount Explain/show your work ?The following information relates to the debt securities investments of Wildcat Company. 1. On February 1, the company purchased 10% bonds of Gibbons Co. having a par value of $300,000 at 100 plus accrued interest. Interest is payable April 1 and October 1. 2. On April 1, semiannual interest is received. 3. On July 1, 9% bonds of Sampson, Inc. were purchased. These bonds with a par value of $200,000 were purchased at 100 plus accrued interest. Interest dates are June 1 and December 1. 4. On September 1, bonds with a par value of $60,000, purchased on February 1, are sold at 99 plus accrued interest. 5. On October 1, semiannual interest is received. 6. On December 1, semiannual interest is received. 7. On December 31, the fair value of the bonds purchased February 1 and July 1 are 95 and 93, respectively. Instructions a. Prepare any journal entries you consider necessary, including year-end entries (December 31), assuming these are available-for-sale securities. b. If…
- The following information relates to the debt investments of Concord Inc. during a recent year: 1. On February 1, the company purchased Gibbons Corp. 10% bonds with a face value of $372,000 at 100 plus accrued interest. Interest is payable on April 1 and October 1. 2. On April 1, semi-annual interest was received on the Gibbons bonds. 3. On June 15, Sampson Inc. 9% bonds were purchased. The $248,000 par-value bonds were purchased at 100 plus accrued interest. Interest dates are June 1 and December 1. 4. On August 31, Gibbons bonds with a par value of $74,400 purchased on February 1 were sold at 99 plus accrued interest. 5. On October 1, semi-annual interest was received on the remaining Gibbons bonds. 6. On December 1, semi-annual interest was received on the Sampson bonds. 7. On December 31, the fair values of the bonds purchased on February 1 and June 15 were 98.5 and 101, respectively. Assume the investments are accounted for under the recognition and measurement requirements of…Q7- Khalid Corporation had the following transactions relating to debt investments: Jan. 1 Purchased 50, $1,000, 12% Naved Company bonds for $50,000 plus broker's fees of $1,500. Interest is payable semiannually on January 1 and July 1. July 1 Received semiannual interest from Naved Company bonds. July 1 Sold 30 Naved Company bonds for $30,000, less $800 broker's fees. Instructions (a). Journalize the transactions, and (b). prepare the adjusting entry for the accrual of interest on December 31.G’s investment account relates to its debt investments and its equity investments. For balance sheet presentation, G includes any separate investment-related adjustment accounts with the investment account. Information about G’s investments follows: o On 06-30-21, G purchased 45, $1,000 3% bonds when similar bonds were paying 3.5%. G incurred and paid $600 of bond purchase-related costs. The bonds were dated 06-30-21, pay interest each June 30 and December 31, and mature on 06-30-25. G classified the bonds as a trading investment. As of 12-31-21, the bonds traded at 99. o On 06-30-19, G purchased 40, $1,000 5% bonds when similar bonds were paying 5%. G incurred and paid $400 of bond purchase-related costs. The bonds were dated 06-30-19 and pay interest each June 30 and December 31 and mature on 06-30-24. G classified these bonds as an available-for-sale investment. The bonds were trading at the following amounts as of the following dates:12-31-19 10012-31-20 10212-31-21 101