OurNewCO sold its Boring bond (AFS) for its fair value, $900,000) January1, 2021. The balances from 12/31/2020 are follows:CASHREVENUEАMORTCV8853016/30/202050,00053118.063,118888,41912/31/202050,00053305.143,305891,724On 12/31/2020 the FV adjustment account had a debit balance of$8276. The face amount of the Boring Bonds is $1,000,000.Write out the journal entries needed to record this sale. Then completethe statements below.

Name: OurNewCO sold its Boring bond (AFS) for its fair value, $900,000) Jan
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: OurNewCO sold its Boring bond (AFS) for its fair value, $900,000) January1, 2021. The balances from 12/31/2020 are follows:CASHREVENUEАMORTCV8853016/30/202050,00053118.063,118888,41912/31/202050,00053305.143,305891,724On 12/31/2020 the FV adjustment

Step 1 Journal is the Part of Book Keeping.

Answered: Write out the journal entries needed to…

Business

Accounting

Write out the journal entries needed to record this sale.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: List the steps to record sales under a perpetual inventory system as a buyer and a seller.

A: The accounting practice of perpetual inventory allows a company to keep continuous, real-time track…

Q: How is a gain contingency reported?

A: Gain contingencies: The excess of book value over the amount to be received is actually gain…

Q: QuickBooks: For a purchase and the subsequent payment for the purchase, indicate which business…

A: QuickBooks: The QuickBooks is accounting software, which helps the small businesses to manage their…

Q: Under what conditions is a market-based transfer price most likely to be used?

A: Transfer Pricing: It is termed as the cost which is charged by the one department of the company…

Q: In the expanded purchases journal, debits are made in which columns? choices: Accounts Payable,…

A: Answer : Merchandise inventory ,office supplies ,and store supplies.

Q: How do you find the ending inventory?

A: Many companies earn revenue by selling inventory rather than a service. These companies are…

Q: A form used to request the responsible person or department to purchase merchandise or other…

A: Person responsible to make purchase would require the details to the purchases required to be made.

Q: Please tell us about Purchases Discounts and Purchases Returns and Allowances. Please indicate the…

A: Purchase discount refers to a form of deduction or declined approved by the seller when the buyer of…

Q: If the goods purchased on account are returned and the buyer uses a periodic inventory system, the…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: Post to the ledger accounts.

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

Q: Distinguish between sales book and sales account.

A: Sales book: Sales book is one of the subsidiary book of accounting in which all the transactions…

Q: When preparing the invoices, the prices come from the A. packing slips B. shipping notices C.…

A: Answer: Invoice is one of the most important document to identify the actual sales or purchases…

Q: Before inventory purchases are recorded, the receiving report should be reconciled to what…

A: Inventory refers to the raw materials, work-in process, and the finished goods products that are…

Q: Describe the Issues Pertaining to the Retail Method.

A: Retail inventory method is used to calculate the value of ending inventory by comparing the retail…

Q: Exercise 8-3 Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $370,000 for real estate…

A: Assets are the property of the business which helps in earning profits of the company. The…

Q: When a proprietor takes goods for own use, we will record it as:…

A: Every transaction of business is recorded as journal entry in the books.

Q: What is another name for the bill that the seller sends to the buyer when the buyer purchases…

A: Solution: Purchase order is prepared and sent by buyer to seller while placing an order. Receiving…

Q: In the expanded purchases journal, debits are made in which columns? A) Accounts Payable,…

A: Expanded Purchases Journal is also called ' Multi-column Purchases journal in which merchandise or…

Q: The journal entry to be recorded by the seller upon receiving payment from a customer who had…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Describe the purpose of caash receipts journal.

A: The cash receipts journal is a special section of the general journal specifically used to record…

Q: determine the cost of merchandise sold.

A: The cost of merchandise sold is the cost of goods that have been sold by a wholesaler or retailer.…

Q: Sale of goods for cash would be recorded in the _______________ Select one: A. purchase journal B.…

A: Correct option is D i.e. cash receipts journal

Q: Which statement about the Expenditure Cycle is correct? The blind copy of the purchase order goes…

A: Step 1 The expenditure cycle is the flow of activities related to the acquisition of and payment for…

Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

Topic Video

Question

100%

OurNewCO sold its Boring bond (AFS) for its fair value, $900,000) January
1, 2021. The balances from 12/31/2020 are follows:
CASH
REVENUE
АMORT
CV
885301
6/30/2020
50,000
53118.06
3,118
888,419
12/31/2020
50,000
53305.14
3,305
891,724
On 12/31/2020 the FV adjustment account had a debit balance of
$8276. The face amount of the Boring Bonds is $1,000,000.
Write out the journal entries needed to record this sale. Then complete
the statements below.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What journal entry is required to record goods taken from inventory by the owner of a business for personal use? A Dr Drawings Cr Purchases В Dr Sales Cr Drawings C Dr Drawings Cr Inventory D Dr Inventory Cr Drawings
Purchased inventory received is added to the inventory records after all of the following are reconciled, except the a.vendor's invoice. b.sales invoice. c.receiving report. d.purchase order.
When recording purchase returns and purchase allowances under the periodic inventory system, what account is used?
Multiple choice 1. Copies of sales invoice are used to do all of the following except A. Ship the merchandise B. Bill the costumer C. Record the sale D. Record the receipt of merchandise
What general ledger journal entries does the purchases system trigger? From which departments do these journal entries arise?
for the journal entry what about record cash paid for frieght cost and record cash paid for specialist fee
Define Perpetual inventory system.
Consider the inventory of a retailer. Describe how the qualities of information presented in this chapter can help enable the efficiency and effectiveness of the organization?
Instructions In this assignment you will record eight transactions related to the sale and purchase of merchandise. You will record each transaction according to the procedures of a periodic inventory system. You will record each transaction according to the procedures of a perpetual inventory system. Include the date for each transaction. Include a brief explanation for each entry similar to the sample entry example. Please skip a line between each transaction entry. You may use the journals provided or create your own journals. If you create your own journals they must have a date column, description column, a debit column and a credit column. You may hand write the journal entries or type them. Transactions to Record Sample Ace Company issues a $200 Sales Allowance to a customer who received damaged merchandise purchased in Feb from Ace. Mar 1 Ace Company sells merchandise totaling $1,500 on account with terms 2/15, n/30, FOB destination. Cost of goods is…
Describe the inventory recording methods.
I am having troubke understanding how to find the ending inventory. Would you mind helping me with that?
what document initiates the sale