Stave Company invests $10,000,000 in 5% fixed rate corporate bonds on January 1, 2017. All the...
Stave Company invests $10,000,000 in 5% fixed rate corporate bonds on January 1, 2017. All the bonds are classified as available-for-sale and are purchased at par. At year-end, market interest rates have declined, and the fair value of the bonds is now $10,600,000. Interest is paid on January 1. Prepare journal entries for Stave Company to (a) record the transactions related to these bonds in 2017, assuming Stave does not elect the fair option; and (b) record the transactions related to these bonds in 2017, assuming that Stave Company elects the fair value option to account for these bonds.
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Stave Company invests $10,000,000 in 5% fixed rate corporate
bonds on January 1, 2017. All the...
Novak Company invests $8,900,000 in 5% fixed rate corporate bonds on January 1, 2017. All the bonds are classified as a...
Novak Company invests $8,900,000 in 5% fixed rate corporate bonds on January 1, 2017. All the bonds are classified as available-for-sale and are purchased at par. At year-end, market interest rates have declined, and the fair value of the bonds is now $9,575,000. Interest is paid on January 1. Prepare journal entries for Novak Company to (a) record the transactions related to these bonds in 2017, assuming Novak does not elect the fair option; and (b) record the transactions related...
Marin Company invests $11,100,000 in 5% fixed rate corporate bonds on January 1, 2017. All the...
Marin Company invests $11,100,000 in 5% fixed rate corporate bonds on January 1, 2017. All the bonds are classified as available-for-sale and are purchased at par. At year-end, market interest rates have declined, and the fair value of the bonds is now $11,629,000. Interest is paid on January 1. Prepare journal entries for Marin Company to (a) record the transactions related to these bonds in 2017, assuming Marin does not elect the fair option; and (b) record the transactions related...
Your answer is partially correct. Try again. Crane Company invests $9,000,000 in 4% fixed rate corporate...
Your answer is partially correct. Try again. Crane Company invests $9,000,000 in 4% fixed rate corporate bonds on January 1, 2017. All the bonds are classified as available-for-sale and are purchased at par. At year-end, market interest rates have declined, and the fair value of the bonds is now $9,648,000. Interest is paid on January 1. Prepare journal entries for Crane Company to (a) record the transactions related to these bonds in 2017, assuming Crane does not elect the fair...
On January 1, 2017, Crane Company purchased 12% bonds, having a maturity value of $304,000, for...
On January 1, 2017, Crane Company purchased 12% bonds, having a maturity value of $304,000, for $327,047.70. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Crane Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows....
On January 1, 2017, Sweet Company purchased 13% bonds, having a maturity value of $321,000, for...
On January 1, 2017, Sweet Company purchased 13% bonds, having a maturity value of $321,000, for $344,727.36. The bonds provide the bondholders with a 11% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Sweet Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows....
On January 1, 2017, Swifty Company purchased 11% bonds, having a maturity value of $328,000, for $353.515.61. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2017, and ma...
On January 1, 2017, Swifty Company purchased 11% bonds, having a maturity value of $328,000, for $353.515.61. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Swifty Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows....
Exercise 17-4 On January 1, 2017, Grouper Company purchased 12% bonds, having a maturity value of...
Exercise 17-4 On January 1, 2017, Grouper Company purchased 12% bonds, having a maturity value of $278,000, for $299,076.51. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2017 2018 2019 $296,600 $287,300 $286,200 2020 2021 $288,200 $278,000 (a) (b) (c) Prepare the journal...
On January 1, 2017, Tango-In-The-Night, Inc., issued $75 million of bonds with an 8% coupon interest...
On January 1, 2017, Tango-In-The-Night, Inc., issued $75 million of bonds with an 8% coupon interest rate. The bonds mature in 10 years and pay interest semi-annually on June 30 and on December 31 of each year. The market rate of interest on January 1, 2017, for bonds of this type was 8%. The company closes its books on December 31. Tango-In-The-Night elects the fair value option under ASU 2016-1. Ignore tax effects. Required: At what price were the bonds...
Your answer is partially correct. Try again. On January 1, 2017, Cheyenne Company purchased 11% bonds,...
Your answer is partially correct. Try again. On January 1, 2017, Cheyenne Company purchased 11% bonds, having a maturity value of $301,000, for $324,415.24. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Cheyenne Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December...
Colah Company purchased $1,000,000 of Jackson, Inc., 5% bonds at their face amount on July 1,...
Colah Company purchased $1,000,000 of Jackson, Inc., 5% bonds at their face amount on July 1, 2021, with interest paid semi- annually. The bonds mature in 20 years but Colah planned to keep them for less than 3 years, and classified them as available for sale Investments. When the bonds were acquired Colah decided to elect the fair value option for accounting for its Investment. At December 31, 2021, the Jackson bonds had a fair value of $1,200,000. Colah sold...
Marin Company invests $11,100,000 in 5% fixed rate corporate bonds on January 1, 2017. All the bonds are classified as available-for-sale and are purchased at par. At year-end, market interest rates have declined, and the fair value of the bonds is now $11,629,000. Interest is paid on January 1. Prepare journal entries for Marin Company to (a) record the transactions related to these bonds in 2017, assuming Marin does not elect the fair option; and (b) record the transactions related...
Your answer is partially correct. Try again. Crane Company invests $9,000,000 in 4% fixed rate corporate bonds on January 1, 2017. All the bonds are classified as available-for-sale and are purchased at par. At year-end, market interest rates have declined, and the fair value of the bonds is now $9,648,000. Interest is paid on January 1. Prepare journal entries for Crane Company to (a) record the transactions related to these bonds in 2017, assuming Crane does not elect the fair...
On January 1, 2017, Swifty Company purchased 11% bonds, having a maturity value of $328,000, for $353.515.61. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Swifty Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows....
Exercise 17-4 On January 1, 2017, Grouper Company purchased 12% bonds, having a maturity value of $278,000, for $299,076.51. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2017 2018 2019 $296,600 $287,300 $286,200 2020 2021 $288,200 $278,000 (a) (b) (c) Prepare the journal...
Your answer is partially correct. Try again. On January 1, 2017, Cheyenne Company purchased 11% bonds, having a maturity value of $301,000, for $324,415.24. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Cheyenne Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December...
Colah Company purchased $1,000,000 of Jackson, Inc., 5% bonds at their face amount on July 1, 2021, with interest paid semi- annually. The bonds mature in 20 years but Colah planned to keep them for less than 3 years, and classified them as available for sale Investments. When the bonds were acquired Colah decided to elect the fair value option for accounting for its Investment. At December 31, 2021, the Jackson bonds had a fair value of $1,200,000. Colah sold...
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