I can not figure out these two journal entries please explain them
Solution 1&2:
Journal Entries - Tanner - UNF Corporation | ||||
Event | Date | Particulars | Debit (In Million) | Credit (In Million) |
1 | 1-Jul-18 | Investment in Bond Dr | $300.00 | |
To Cash | $280.00 | |||
To Discount on bond investment | $20.00 | |||
(Being investment in bond recorded) | ||||
2 | 31-Dec-18 | Cash Dr ($300 * 7% * 6/12) | $10.50 | |
Discount on bond investment Dr | $0.70 | |||
To Interest revenue ($280*8%*6/12) | $11.20 | |||
(Being revenue recoginition for bond interest and discount amortized) |
solution 3:
Journal Entries - Tanner - UNF Corporation | ||||
Event | Date | Particulars | Debit (In Million) | Credit (In Million) |
1 | 31-Dec-18 | Fair value adjustment Dr ($285 - $280 - $0.70) | $4.30 | |
To Unrealized holding gain or loss - NI | $4.30 | |||
(Being adjusting entry to record investment at fair value) |
Solution 4:
Journal Entries - Tanner UNF Corportation | ||||
Event | Date | Particulars | Debit (In Million) | Credit (In Million) |
1 | 2-Jan-19 | Unrealized holding gain or loss - NI Dr | $4.30 | |
To Fair value adjustment | $4.30 | |||
(Being reversal of fair value adjustment at the time of sale) | ||||
2 | 2-Jan-19 | Cash Dr | $260.00 | |
Discount on bond investment Dr | $19.30 | |||
Loss on sale of investment Dr | $20.70 | |||
To Investment in Bond | $300.00 | |||
(To record sale of investment) |
I can not figure out these two journal entries please explain them Tanner-UNF Corporation acquired as...
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