Homework Answers
| The available for sale securities will be recorded at their fair value at the end of accounting period. | ||||
| Investment = $6,00,000 | ||||
| Journal | ||||
| Date | Account Name | Debit | Credit | |
| 31-Dec-19 | Loss on available-for-sale securities - OCI ($610000-$600000) | $10,000 | ||
| Investments – Available-for-sale | $10,000 | |||
| (To record the decrease in fair value of available for sale securities in 2019 with respect to 2018) | ||||
Add Answer to:
For several years Fister Links Products has held Microsoft bonds, considered by the company to be...
For several years Fister Links Products has held shares of Microsoft common stock, considered by the...
For several years Fister Links Products has held shares of Microsoft common stock, considered by the company to be securities available-for-sale. The shares were acquired at a cost of $500,000. Their fair value last year was $610,000 and is $670,000 this year. At what amount will the investment be reported in this year's balance sheet? What adjusting entry is required to accomplish this objective?
question the previous attempt. Available-for-Sale Securities Company A bonds Company B notes Company C bonds Cost...
question the previous attempt. Available-for-Sale Securities Company A bonds Company B notes Company C bonds Cost $534,300 159,490 661,900 Fair Value $490, eee 148,000 644,280 Stoll enters into the following transactions involving its available for sale debt securities this year. Jan. 29 Sold one-half of the Company B notes for $78,500. July 6 Purchased bonds of Company X for $120,680. Nov. 13 Purchased notes of Company 2 for $267,000. Dec. 9 Sold all of the bonds of Company A for...
Federal Semiconductors issued 10% bonds, dated January 1, with a face amount of $920 million on January 1, 2018. The bo...
Federal Semiconductors issued 10% bonds, dated January 1, with a face amount of $920 million on January 1, 2018. The bonds sold for $846187,826 and mature on December 31, 2037 (20 years). For bonds of similar risk and maturity the market yield was 11%. Interest is paid semiannually on June 30 and December 31. Federal determines interest at the effective rate. Federal elected the option to report these bonds at their fair value. On December 31, 2018, the fair value...
Jones Inc. 6% bonds, purchased at face value, with an amortized cost of $3,950,000, and classified...
Jones Inc. 6% bonds, purchased at face value, with an amortized cost of $3,950,000, and classified as an available-for-sale investment. Because of unrealized losses prior to 2021, the Jones bonds have a fair value adjustment account with a credit balance of $550,000, such that the carrying value of the Jones investment is $3,400,000 prior to making any adjusting entries in 2021. At December 31, 2021, the Jones investment had a fair value of $2,850,000, and Stewart calculated that $300,000 of...
Bonita Corporation has municipal bonds classified as a held-to-maturity at December 31, 2017. These bonds have...
Bonita Corporation has municipal bonds classified as a held-to-maturity at December 31, 2017. These bonds have a par value of $730,000, an amortized cost of $730,000, and a fair value of $653,000. The company believes that impairment accounting is now appropriate for these bonds. Prepare the journal entry to recognize the impairment. What is the new cost basis of the municipal bonds? Given that the maturity value of the bonds is $730,000, should Bonita Corporation amortize the difference between the...
Stewart Enterprises has the following investments, all purchased prior to 2021: Stewart does not intend to...
Stewart Enterprises has the following investments, all purchased prior to 2021: Stewart does not intend to sell any of these investments and does not believe it is more likely than not that it will have to sell any of the bond investments before fair value recovers. Required: For each investment, Prepare the appropriate adjusting journal entries to account for each investment for 2021 and 2022. 1. Bee Company 5% bonds, purchased at face value, with an amortized cost of $4,080,000,...
Oliver Corporation 4% bonds, purchased at face value, with an amortized cost of $2,950,000, classified as...
Oliver Corporation 4% bonds, purchased at face value, with an amortized cost of $2,950,000, classified as a trading security. Because of unrealized losses prior to 2021, the Oliver bonds have a fair value adjustment account with a credit balance of $350,000, such that the carrying value of the Oliver investment is $2,600,000 prior to making any adjusting entries in 2021. At December 31, 2021, the Oliver investment had a fair value of $2,350,000, and Stewart calculated that $270,000 of the...
5. On December 31, 2018, Marsh Company held Xenon Company bonds in its portfolio of available-for-sale...
5. On December 31, 2018, Marsh Company held Xenon Company bonds
in its portfolio of available-for-sale securities. The bonds have a
par value of $14,000, carry a 10% annual interest rate, mature in
2025, and had originally been purchased at par. The market value of
the bonds at December 31, 2018 was $12,000. The December 31, 2018,
balance sheet showed the following:
Marsh Company
Partial Balance Sheet
December 31, 2018
1
Assets
2
Investment in Available-for-Sale Securities
$14,000.00
3
Less:...
On December 31, 2018, Marsh Company held Xenon Company bonds in its portfolio of available-for-sale securities....
On December 31, 2018, Marsh Company held Xenon Company bonds in its portfolio of available-for-sale securities. The bonds have a par value of $15,000, carry a 10% annual interest rate, mature in 2025, and had originally been purchased at par. The market value of the bonds at December 31, 2018 was $13,000. The December 31, 2018, balance sheet showed the following: Marsh Company Partial Balance Sheet December 31, 2018 1 Assets 2 Investment in Available-for-Sale Securities $15,000.00 3 Less: Allowance...
Exercise 14-29 (Algo) Reporting bonds at fair value [LO14-6] Federal Semiconductors issued 12% bonds, dated January...
Exercise 14-29 (Algo) Reporting bonds at fair value [LO14-6] Federal Semiconductors issued 12% bonds, dated January 1, with a face amount of $790 million on January 1, 2021. The bonds sold for $734.125,169 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 13%. Interest is paid semiannually on June 30 and December 31. Federal determines interest at the effective rate. Federal elected the option to report these bonds at their...
question the previous attempt. Available-for-Sale Securities Company A bonds Company B notes Company C bonds Cost $534,300 159,490 661,900 Fair Value $490, eee 148,000 644,280 Stoll enters into the following transactions involving its available for sale debt securities this year. Jan. 29 Sold one-half of the Company B notes for $78,500. July 6 Purchased bonds of Company X for $120,680. Nov. 13 Purchased notes of Company 2 for $267,000. Dec. 9 Sold all of the bonds of Company A for...
Federal Semiconductors issued 10% bonds, dated January 1, with a face amount of $920 million on January 1, 2018. The bonds sold for $846187,826 and mature on December 31, 2037 (20 years). For bonds of similar risk and maturity the market yield was 11%. Interest is paid semiannually on June 30 and December 31. Federal determines interest at the effective rate. Federal elected the option to report these bonds at their fair value. On December 31, 2018, the fair value...
Jones Inc. 6% bonds, purchased at face value, with an amortized cost of $3,950,000, and classified as an available-for-sale investment. Because of unrealized losses prior to 2021, the Jones bonds have a fair value adjustment account with a credit balance of $550,000, such that the carrying value of the Jones investment is $3,400,000 prior to making any adjusting entries in 2021. At December 31, 2021, the Jones investment had a fair value of $2,850,000, and Stewart calculated that $300,000 of...
Oliver Corporation 4% bonds, purchased at face value, with an amortized cost of $2,950,000, classified as a trading security. Because of unrealized losses prior to 2021, the Oliver bonds have a fair value adjustment account with a credit balance of $350,000, such that the carrying value of the Oliver investment is $2,600,000 prior to making any adjusting entries in 2021. At December 31, 2021, the Oliver investment had a fair value of $2,350,000, and Stewart calculated that $270,000 of the...
5. On December 31, 2018, Marsh Company held Xenon Company bonds
in its portfolio of available-for-sale securities. The bonds have a
par value of $14,000, carry a 10% annual interest rate, mature in
2025, and had originally been purchased at par. The market value of
the bonds at December 31, 2018 was $12,000. The December 31, 2018,
balance sheet showed the following:
Marsh Company
Partial Balance Sheet
December 31, 2018
1
Assets
2
Investment in Available-for-Sale Securities
$14,000.00
3
Less:...
Exercise 14-29 (Algo) Reporting bonds at fair value [LO14-6] Federal Semiconductors issued 12% bonds, dated January 1, with a face amount of $790 million on January 1, 2021. The bonds sold for $734.125,169 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 13%. Interest is paid semiannually on June 30 and December 31. Federal determines interest at the effective rate. Federal elected the option to report these bonds at their...
Most questions answered within 3 hours.
-
Calculate the pH of each of the following solutions.
0.50 M HBr
3.1×10−4 M KOH
4.2×10−5...
asked 1 hour ago -
For the year ended December 31, Depot Max’s cost of merchandise
sold was $85,600. Inventory at the...
asked 1 hour ago -
Week 10 - Professional Memo Assignment
Professional Memo Assignment
Your mission for this week, should you...
asked 1 hour ago -
Write a Python program that stores the data for each
player on the team, and it...
asked 1 hour ago -
In
the last 3 months, mike never knows when he is going to get his
allowance...
asked 2 hours ago -
Is Ca(OH)2 a Bronsted base, Lewis base, or both? Why?
asked 2 hours ago -
1A- Why don’t voters complain about U.S. tariffs on imported
sugar?
Because sugar is only a...
asked 2 hours ago -
Cash Payback Period
Primera Banco is evaluating two capital investment proposals for
a drive-up ATM kiosk,...
asked 2 hours ago -
Create a button in Swift (Xcode) that will create a charge,
create a charge using Stripe's...
asked 2 hours ago -
The reaction rate of CO and NO2 in the reaction
CO(g) + NO2(g) → CO2(g) +...
asked 2 hours ago -
Imagine that a chemist puts 6.40 mol each of
C3H8 and O2 in a 1.00-L container...
asked 2 hours ago -
How much money should be invested today in order to have $8340
at the end of...
asked 2 hours ago