Homework Answers
As Union Corporation intends to hold the bonds indefinitely, they are carried at face value and no year end adjustment is required.
The answer is - No journal entry is required.
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On February 18, 2021, Union Corporation purchased 2,291 IBM bonds as a long-term investment at their...
On February 18, 2021, Union Corporation purchased 1,056 IBM bonds as a long-term investment at their...
On February 18, 2021, Union Corporation purchased 1,056 IBM bonds as a long-term investment at their face value for a total of $1,056,000. Union will hold the bonds indefinitely, and may sell them if their price increases sufficiently. On December 31, 2021, and December 31, 2022, the market value of the bonds was $1,024,000 and $1,072,000, respectively. Required: 2. & 3. Prepare the adjusting entry for December 31, 2021 and 2022. (If no entry is required for a transaction/event, select...
Exercise 12-13 Classification of securities; adjusting entries [LO12-4] On February 18, 2018, Union Corporation purchased $1,311,000...
Exercise 12-13 Classification of securities; adjusting entries [LO12-4] On February 18, 2018, Union Corporation purchased $1,311,000 of IBM bonds. Union will hold the bonds indefinitely, and may sell them if their price increases sufficiently. On December 31, 2018, and December 31, 2019, the market value of the bonds was $1,273,000 and $1,330,000, respectively. Required: 2. & 3. Prepare the adjusting entry for December 31, 2018 and 2019. (If no entry is required for a transaction/event, select "No journal entry required"...
On February 18, 2021, Joey Co. purchased Debt of IBM as a long-term investment for $60...
On February 18, 2021, Joey Co. purchased Debt of IBM as a long-term investment for $60 Million at par. Joey Co. does not intend to hold this Debt Investment till maturity but also, does not intend to sell it in the short-term. On December 31, 2021, and December 31, 2022, the market value of Joey’s Co’s Debt Investment is $58 Million and $61 Million, respectively. Required: 1. What is appropriate reporting category for this investment? Why? 2. Prepare the adjusting...
On February 18, 2021, Joey Co. purchased Debt of IBM as a long-term investment for $60...
On February 18, 2021, Joey Co. purchased Debt of IBM as a long-term investment for $60 Million at par. Joey Co. does not intend to hold this Debt Investment till maturity but also, does not intend to sell it in the short-term. On December 31, 2021, and December 31, 2022, the market value of Joey’s Co’s Debt Investment is $58 Million and $61 Million, respectively. Required: 1. What is appropriate reporting category for this investment? Why? 2. Prepare the adjusting...
On February 18, 2021, Joey Co. purchased Debt of IBM as a long-term investment for $60...
On February 18, 2021, Joey Co. purchased Debt of IBM as a long-term investment for $60 Million at par. Joey Co. does not intend to hold this Debt Investment till maturity but also, does not intend to sell it in the short-term. On December 31, 2021, and December 31, 2022, the market value of Joey's Co's Debt Investment is $58 Million and $61 Million, respectively. Required: 1. What is appropriate reporting category for this investment? Why? 2. Prepare the adjusting...
12 HW 5 Exercise 12-13 Classification of securities; adjusting entries [LO12-4] On February 18, 2018, Union...
12 HW 5 Exercise 12-13 Classification of securities; adjusting entries [LO12-4] On February 18, 2018, Union Corporation purchased $2,184,000 of IBM bonds. Union will hold the bonds indefinitely, and may sell them if their price increases sufficlently. On December 31, 2018, and December 31, 2019, the market value of the bonds was $2128,000 and $2,212,000, respectively. 2. & 3. Prepare the adjusting entry for December 31, 2018 and 2019. (If no entry is required for a transactlon/event, select "No Journal...
On February 1, 2021. Sanford & Son issued 10% bonds dated February 1, 2021, with a...
On February 1, 2021. Sanford & Son issued 10% bonds dated February 1, 2021, with a face amount of $230,000. The bonds sold for $275,524 and mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31. Sanford & Son's fiscal year is the calendar year. Required: 1. Prepare the journal entry to record the bond issuance on February 1, 2021. 2. Prepare the entry to record interest...
On February 1, 2021, Strauss-Lombardi issued 9% bonds, dated February 1, with a face amount of...
On
February 1, 2021, Strauss-Lombardi issued 9% bonds, dated February
1, with a face amount of $780,000. The bonds sold for $713,083 and
mature on January 31, 2041 (20 years). The market yield for bonds
of similar risk and maturity was 10%. Interest is paid semiannually
on July 31 and January 31. Strauss-Lombardi’s fiscal year ends
December 31. Required: 1. to 4. Prepare the journal entries to
record their issuance by Strauss-Lombardi on February 1, 2021,
interest on July 31,...
TB Problem 12-152 (Static) On March 17, 2020, Union Corporation purchased 500 bonds of AZQ as...
TB Problem 12-152 (Static) On March 17, 2020, Union Corporation purchased 500 bonds of AZQ as a long-term investment at $400 per bond. On December 31, 2020, and December 31, 2021, the market value of the AZQ bonds is $420 and $430, respectively, Required: 1. What is the appropriate reporting category for this investment? 2. Prepare the adjusting entry on December 31, 2020 3. Prepare the adjusting entry on December 31, 2021. 7 Complete this question by entering your answers...
Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on...
Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% 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 lyield) was 8% 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. As a result of changing market conditions, the fair value of the bonds at...
On February 18, 2021, Joey Co. purchased Debt of IBM as a long-term investment for $60 Million at par. Joey Co. does not intend to hold this Debt Investment till maturity but also, does not intend to sell it in the short-term. On December 31, 2021, and December 31, 2022, the market value of Joey's Co's Debt Investment is $58 Million and $61 Million, respectively. Required: 1. What is appropriate reporting category for this investment? Why? 2. Prepare the adjusting...
12 HW 5 Exercise 12-13 Classification of securities; adjusting entries [LO12-4] On February 18, 2018, Union Corporation purchased $2,184,000 of IBM bonds. Union will hold the bonds indefinitely, and may sell them if their price increases sufficlently. On December 31, 2018, and December 31, 2019, the market value of the bonds was $2128,000 and $2,212,000, respectively. 2. & 3. Prepare the adjusting entry for December 31, 2018 and 2019. (If no entry is required for a transactlon/event, select "No Journal...
On February 1, 2021. Sanford & Son issued 10% bonds dated February 1, 2021, with a face amount of $230,000. The bonds sold for $275,524 and mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31. Sanford & Son's fiscal year is the calendar year. Required: 1. Prepare the journal entry to record the bond issuance on February 1, 2021. 2. Prepare the entry to record interest...
On
February 1, 2021, Strauss-Lombardi issued 9% bonds, dated February
1, with a face amount of $780,000. The bonds sold for $713,083 and
mature on January 31, 2041 (20 years). The market yield for bonds
of similar risk and maturity was 10%. Interest is paid semiannually
on July 31 and January 31. Strauss-Lombardi’s fiscal year ends
December 31. Required: 1. to 4. Prepare the journal entries to
record their issuance by Strauss-Lombardi on February 1, 2021,
interest on July 31,...
TB Problem 12-152 (Static) On March 17, 2020, Union Corporation purchased 500 bonds of AZQ as a long-term investment at $400 per bond. On December 31, 2020, and December 31, 2021, the market value of the AZQ bonds is $420 and $430, respectively, Required: 1. What is the appropriate reporting category for this investment? 2. Prepare the adjusting entry on December 31, 2020 3. Prepare the adjusting entry on December 31, 2021. 7 Complete this question by entering your answers...
Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% 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 lyield) was 8% 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. As a result of changing market conditions, the fair value of the bonds at...
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