Wildhorse Company purchased $1290000 of 8%, 5-year bonds from Blossom, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $1339896 at an effective interest rate of 7%. Using the effective interest method, Wildhorse Company decreased the Available-for-Sale Debt Securities account for the Blossom, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $5148 and $5292, respectively. At December 31, 2021, the fair value of the Blossom, Inc. bonds was $1353000. What should Wildhorse Company report as other comprehensive income and as a separate component of stockholders’ equity?   $0     $23544     $10440     $13104

Q: On January 1, 2021, Kaye Ltd. purchased $250,000 of Danford Co.'s 4%, 8-year bonds.  The market rate…

A: Under Effective Interest Rate Method , Interest Income/Expense will be recognized at Market Rate.

Q: Rell Corporation reports under IFRS No. 9. Rell has an investment in Tirish, Inc. bonds that Rell…

A: 1. Prepare the journal to record the impairment loss for Company R, on December 31, 2018, assuming…

Q: PT ABC purchased Rp300.000 of 8%, 5-year bonds from PT DEF on January 1, 2018, with interest payable…

A: Half Year Opening Balance Interest Expense @ 3.5% Coupon Payment Amortized Premium Ending Balance…

Q: On January 1, 2021, Tiny Tim Industries had outstanding $1,000,000 of 8% bonds with a book value of…

A: A bond is the long-term debt of an entity. The bonds are paid in more than one year. The bonds…

Q: On July 1, 2020, West Company purchased for cash, three $10,000 bonds of North Corporation at a…

A: Bonds Payable = $10,000 * 3 bonds = $30,000 The calculation for Issue Price of bonds: The present…

Q: Stellar Co. sold $1,950,000 of 12%, 10-year bonds at 106 on January 1, 2020. The bonds were dated…

A: When bonds are issued at a price more than face value, then it means they are issued at a premium.…

Q: Crane Company purchased $2400000 of 9%, 5-year bonds from Swifty, Inc. on January 1, 2025 with…

A: Other comprehensive income=Fair value of bonds-Bond carrying value

Q: On September 1, 2019, PT XYZ purchased 600 of the Rp1.000 face value, 9% bonds of PT DEF for…

A: Year Coupon @ 4.5% Present Value factor @4% Present Value Mar-20 27         0.962         25.96…

Q: The 8% bonds payable of Bonita Industries had a net carrying amount of $2860000 on December 31,…

A: Computation of the loss on the retirement of the bonds are as follows:

Q: On January 1, 2025, Sunland Co. redeemed its 15-year bonds of $7090000 par value for 102. They were…

A: Step 1: Compute the total discount on bonds payable:Step 2: Compute the discount amortized till…

Q: Sandhill Company purchased $3400000 of 8%, 5-year bonds from Blue, Inc. on January 1, 2021, with…

A: Given, Sales price of bond is $3,490,000 Carrying value of bond is $3,497,440   The computation is…

Q: An investor company purchased $716,000 of 4% bonds from the investee company on January 1, 2020,…

A: When the corporation buys securities with the intention to resell them or not hold them till…

Q: On September 1, 2019, PT ABC purchased 600 of the Rp1.000 face value, 9% bonds of PT DEF for…

A: Answer An amortized bond is one in which the principal (face value) on the debt is paid down…

Q: On its December 31, 2020 balance sheet, Coronado Industries reported bonds payable of $6100000. The…

A: Meaning of call Premium: Call premium is the dollar amount over the par value of callable debt…

Q: An investor company purchased $790,000 of 5% bonds from the investee company on January 1, 2020,…

A: An available for sale securities is a security that do not fall under either the trading securities…

Q: ABC Company purchased $3500000 of 9%, 5-year bonds from XYZ, Inc. on January 1, 2021, with interest…

A: calculation are as follows

Q: On January 1, 2015, Marigold Corp. issued $17100000 of 10% ten-year bonds at 102. The bonds are…

A: Requirement of the question : calculation of gain/loss on reacquisition.Meaning of bonds : Bonds are…

Q: Jim Company issued P 4,000,000 of 8 ½%, 5- year bonds on March 1,2018. Interest payment dates are…

A: Since we answer only up to three sub-parts, we shall answer the first three. Please resubmit a new…

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…

Q: On April 1, 2020, Purefoods Company purchased a bond for P910,000 including accrued interest and…

A: The amount by which the proceeds from the sale of investments were greater than the carrying value…

Q: On January 1, 2020, Sage Company purchased $270,000, 6% bonds of Aguirre Co. for $248,099. The bonds…

A: The procedure of recording business transactions for the first time in the books of accounts is…

Q: 7)  ABC Company purchased $1,200,000 of 7%, 5-year bonds from XYZ, Inc. on January 1, 2021, with…

A: Bond is that debt instrument which is used by the organisation to finance its long term fund needs,…

Q: An investor company purchased $491,000 of 8% bonds from the investee company on January 1, 2020,…

A: Particulars Amount Cost of Bond Investment on Jan.1,2020 $755470 Add: Amortization of Discount…

Q: On January 3, 2024, Oriole Company acquires $410000 of Pharoah Company's 10-year, 10% bonds for…

A: Step 1: Compute the coupon interest Face value      410,000  multiply: Coupon rate 10% Coupon…

Q: Blossom Company purchased $1300000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with…

A: When the sale price of bonds is greater than the book value of the bonds, then it would result in…

Q: Sarasota Corp. retires its $928000 face value bonds at 105 on January 1, following the payment of…

A: Journal entry is a record of financial transaction in the books of accounts of a business. It has a…

Q: On January 1, 2010, the Wender Company paid $223,515 to purchase bonds with a face value of…

A: The company can purchase the bonds. The company invests to diversify the portfolio or minimize the…

Q: On January 1, 2015, Vaughn Manufacturing issued $17820000 of 10% ten-year bonds at 1 The bonds are…

A: Straight line basis is a method of calculating depreciation and amortization, the process of…

Q: On July 1, 2020, West Company purchased for cash, three $10,000 bonds of North Corporation at a…

A: Journal entry: It is prepared to record the financial and non-financial transactions of the business…

Q: Sheridan Company purchased $1750000 of 10% bonds of Scott Company on January 1, 2021, paying…

A: Lets understand the basics.Bond :— It is one of the source of capital that pays fixed periodic…

Q: An investor company purchased $427,000 of 8% bonds from the investee company on January 1, 2020,…

A: Bonds:- Bonds are defined as the fixed income instrument which shows the amount of loan paid by the…

Q: Hiu Wang Company sold $55,000,000, 8%, 10-year bonds on January 1, 2020. The bonds apply interest on…

A: Face value of the Bonds = $55,000,000 Interest rate = 8% p.a. payable semi-annually on July 1 and…

Q: MSG Corporation issued $100,000 of 3-year, 6% bonds outstanding on December 31, 2020 for $106,000.…

A: When issue price is greater than the face value then it means the bonds are issued at a premium. The…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.