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: On January 1, 2020, Blossom Company purchased $310,000, 6% bonds of Aguirre Co. for $284,855. The…

A: Under the effective interest method of amortization of discount or premium, the difference between…

Q: On September 1, 2021, Howell Company purchased 600 of the P1,000 face value, 9% bonds of Ramsey,…

A: The bonds purchased for non trading are recorded as investment in the balance sheet. The difference…

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

Q: Id Co. sold $5,230,000 of 6%, 10-year bonds at 103 on January 1, 2025. The bonds were dated January…

A: Amortization -The two very distinct financial processes that are sometimes referred to as…

Q: Landis Company purchased $3,000,000 of 8%, 5-year bonds from Ritter, Inc. on January 1, 2018, with…

A: Other comprehensive income=Fair value of bonds-(Sales value of bonds-Amortized premiums)

Q: On January 1, 2018, Doty Co. redeemed its 15-year bonds of $7,000,000 par value for 102. They were…

A: Redmeption price = Bond Value * 102/100 Cash redeemed = 92/100 * bond Value

Q: od to amortize discount or premium. On Ja Is for $258,816 after receiving interest to m 1/27 - /27 -…

A: Calculate the semiannual interest income using the effective-interest method:The effective interest…

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…

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

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: On January 1, 2020, Nash Company purchased $330,000, 8% bonds of Aguirre Co. for $304,517. The bonds…

A: Bond's purchased as available-for-sale are to be recorded at their fair value in books.

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A: When the issue price of a bond is lower than the face value then, it is called to be issued at…

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A: Initial recognition of bonds = P4, 206,000 Interest will be paid on face value

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A: Bonds are issued by organizations to raise long-term funds. Bonds can be issued at par, at a…

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

Q: On January 1, 2020, Garland Company purchased bonds with a face amount of P8,000,000 for P7,679,000…

A: Investment is recognized at fair value and that value of the investment is increased by the interest…

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

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A: Bonds selling at a price below the face value result in discount. The discount on bonds is amortized…

Q: Black Company purchased P400,000 of 10% bonds of White Co. on January 1, 2021, paying P376,100. The…

A: Bond :— It is one of the source of capital that pays fixed periodic interest and face value at the…

Q: erest Receivable Bond Carrying Or Interest Discount Amount of Cash Received Revenue Amortization…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

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: Presented below are two independent situations. (a) Bramble Co. sold $1,930,000 of 12%, 10-year…

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

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A: Bonds refers to the units of corporate debts which are issued by companies and also securitized…

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A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

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A: Any change in the value of Available-for-Sale Debt Securities are recorded an gain or loss…

Q: Pharoah Company purchased $3200000 of 9%, 5-year bonds from Wildhorse, Inc. on January 1, 2021, with…

A: The question is based on the concept of Financial Accounting.

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A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: On January 1, 2025, Sheffield Company purchased $410,000, 8% bonds of Aguirre Co, for $378,339. The…

A: Let's break down the information and calculate the necessary values: 1. Purchase of Aguirre Co.…

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A: Bonds can be define as an instrument which most commonly used by corporate entities and government…

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Q: Prepare the journal entry to record the purchase of bonds on January 1. Assume that the bonds are…

A: The financial instrument issued at a premium. In this scenario, the difference between the amount…

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Q: Presented below are two independent situations. (a) Oriole Co. sold $1,840,000 of 12%, 10-year bonds…

A:

Q: Presented below are two independent situations. (a) Pharoah Co. sold $1,890,000 of 12%, 10-year…

A: Hi studentSince there are multiple questions asked, we will answer only first question.Bonds payable…

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.