Homework Answers
Req 1 &2:
| No | Event | General Journal | Debit | Credit |
| 1 | 1 | Investment in bonds | 240 | |
| Premium on bond investment | 40 | |||
| Cash | 280 | |||
| 2 | 2 | Cash [ 240*3%] | 7.2 | |
| Premium on bond investment | 1.6 | |||
|
Interest revenue [280 million* 2%] |
5.6 |
Req 3:
| 3 | Investment | 278.4 | [240+(40-1.6)] |
Req 4:
| No | Event | General Journal | Debit | Credit |
| 1 | 1 | Fair value adjustment,AFS investment | 20 | |
| Unrealized holding gain - OCI | 20 | |||
| 2 | 2 | Cash | 290 | |
| Gain on sale of investment [ bal. fig] | 11.6 | |||
|
Premium on bond investment [40-1.6] |
38.4 | |||
| Investment in bonds | 240 | |||
| 3 | 3 | Reclassification adjustment - OCI | 11.6 | |
| Fair value adjustment,AFS investment | 11.6 |
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E 12-11 Available for sale securities • LO12-1,LO12-4 [This is a variation of E 12-2 focusing...
E 12-2 Securities held-to-maturity; bond investment; effective interest, premium LO12-1 Mills Corporation acquired as a long-term...
E 12-2 Securities held-to-maturity; bond investment; effective interest, premium LO12-1 Mills Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1, 2018. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 4% for bonds of similar risk and maturity. Mills paid $280 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of...
[This is a variation of E 12–2 focusing on trading securities.] Mills Corporation acquired as a...
[This is a variation of E 12–2 focusing on trading securities.] Mills Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1, 2018. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 4% for bonds of similar risk and maturity. Mills paid $280 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result...
Exercise 12.2 Securities held-to-maturity: bond investment; effective interest, premium (LO12-1) Mills Corporation acquired as a long-term...
Exercise 12.2 Securities held-to-maturity: bond investment; effective interest, premium (LO12-1) Mills Corporation acquired as a long-term investment $240 million of x bonds, dated July 1. on July 2018. Company management has positive intent and ability to hold the bonds until maturity. The market interest rate (yield was 4% for bonds of similar risk and maturity Mills paid $280 million for the bonds. The company will recewe interest semiannually on June 30 and December 31 As a result of changing market...
Mills Corporation acquired as a long-term investment $240 million of 8% bonds, dated July 1, on July 1, 2021. Company management has classified the bonds as an available-for-sale investment.
Mills Corporation acquired as a long-term investment $240 million of 8% bonds, dated July 1, on July 1, 2021. Company management has classified the bonds as an available-for-sale investment. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Mills paid $280 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was...
Exercise 12-10 Available-for-sale securities [LO12-1, 12-4] Tanner-UNF Corporation acquired as a long-term investment $240 million of...
Exercise 12-10 Available-for-sale securities [LO12-1, 12-4] Tanner-UNF Corporation acquired as a long-term investment $240 million of 8% bonds, dated July 1, on July 1, 2018. The market interest rate (yield) was 10% for bonds of similar risk and maturity. Tanner-UNF paid $200 million for the bonds. The company will receive interest semiannually on June 30 and December 31. Company management has classified the bonds as available-for-sale investments. As a result of changing market conditions, the fair value of the bonds...
Mills Corporation acquired as an investment $240 million of 7% bonds, dated July 1, on July...
Mills Corporation acquired as an investment $240 million of 7% bonds, dated July 1, on July 1, 2021. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 5% for bonds of similar risk and maturity. Mills paid $280 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $260...
Mills Corporation acquired as a long-term investment $240 million of 8% bonds, dated July 1, on...
Mills Corporation acquired as a long-term investment $240 million of 8% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Mills paid $280.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at...
This is a variation of E 12-1 modified to focus on trading securities.) Tanner-UNF Corporation acquired...
This is a variation of E 12-1 modified to focus on trading securities.) Tanner-UNF Corporation acquired as an investment $240 million of 6% bonds, dated July 1, on July 1, 2021. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $200 million for the bonds. The company will receive inter- est semiannually on June 30 and December 31. As a result of changing...
Exercise 12-10 (Algo) Available-for-sale securities [LO12-1, 12-4) Tanner-UNF Corporation acquired as a long-term investment $260 million...
Exercise 12-10 (Algo) Available-for-sale securities [LO12-1, 12-4) Tanner-UNF Corporation acquired as a long-term investment $260 million of 7% bonds, dated July 1, on July 1, 2021 Company management has classified the bonds as an available for sale investment. The market interest rate yield) was 9% for bonds of similar risk and maturity. Tanner-UNF paid $220 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair...
Exercise 12-10 Available-for-sale securities [LO12-1, 12-4] Tanner-UNF Corporation acquired as a long-term investment $2...
Exercise 12-10 Available-for-sale securities [LO12-1, 12-4] Tanner-UNF Corporation acquired as a long-term investment $260 million of 5% bonds, dated July 1, on July 1, 2018. The market interest rate (yield) was 7% for bonds of similar risk and maturity. Tanner-UNF paid $200 million for the bonds. The company will receive interest semiannually on June 30 and December 31. Company management has classified the bonds as available-for-sale investments. As a result of changing market conditions, the fair value of the bonds...
E 12-2 Securities held-to-maturity; bond investment; effective interest, premium LO12-1 Mills Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1, 2018. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 4% for bonds of similar risk and maturity. Mills paid $280 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of...
Exercise 12.2 Securities held-to-maturity: bond investment; effective interest, premium (LO12-1) Mills Corporation acquired as a long-term investment $240 million of x bonds, dated July 1. on July 2018. Company management has positive intent and ability to hold the bonds until maturity. The market interest rate (yield was 4% for bonds of similar risk and maturity Mills paid $280 million for the bonds. The company will recewe interest semiannually on June 30 and December 31 As a result of changing market...
Exercise 12-10 Available-for-sale securities [LO12-1, 12-4] Tanner-UNF Corporation acquired as a long-term investment $240 million of 8% bonds, dated July 1, on July 1, 2018. The market interest rate (yield) was 10% for bonds of similar risk and maturity. Tanner-UNF paid $200 million for the bonds. The company will receive interest semiannually on June 30 and December 31. Company management has classified the bonds as available-for-sale investments. As a result of changing market conditions, the fair value of the bonds...
Mills Corporation acquired as an investment $240 million of 7% bonds, dated July 1, on July 1, 2021. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 5% for bonds of similar risk and maturity. Mills paid $280 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $260...
Mills Corporation acquired as a long-term investment $240 million of 8% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Mills paid $280.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at...
This is a variation of E 12-1 modified to focus on trading securities.) Tanner-UNF Corporation acquired as an investment $240 million of 6% bonds, dated July 1, on July 1, 2021. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $200 million for the bonds. The company will receive inter- est semiannually on June 30 and December 31. As a result of changing...
Exercise 12-10 (Algo) Available-for-sale securities [LO12-1, 12-4) Tanner-UNF Corporation acquired as a long-term investment $260 million of 7% bonds, dated July 1, on July 1, 2021 Company management has classified the bonds as an available for sale investment. The market interest rate yield) was 9% for bonds of similar risk and maturity. Tanner-UNF paid $220 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair...
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