Homework Answers
Add Answer to:
Question 4 (25 points) On January 1, 2018, Investor Company purchased Investee Company bonds with a...
On January 1, 2018, an investor company acquired 30% of an investee company’s common stock for...
On January 1, 2018, an investor company acquired 30% of an investee company’s common stock for $600,000. As a result of this transaction, the investor can exert significant influence over the investee. During each year ended December 31, 2018 and 2019 the investee reported $120,000 of net income and $50,000 of dividends. On January 1, 2018, the book value of the investee’s net assets was $2,000,000 and all individual net assets had appraised fair values that equaled their reported book...
On January 1, 2018, Hoosier Company purchased $944,000 of 10% bonds at face value. The bond...
On January 1, 2018, Hoosier Company purchased $944,000 of 10% bonds at face value. The bond market value was $987,000 on December 31, 2018. Required: Prepare the appropriate journal entry on December 31, 2018, to properly value the bonds assuming the bonds are classified as: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Trading securities. Securities available for sale. Held-to-maturity securities.
On January 1, 2018, Hoosier Company purchased $948,000 of 10% bonds at face value. The bond...
On January 1, 2018, Hoosier Company purchased $948,000 of 10% bonds at face value. The bond market value was $989,000 on December 31, 2018. Required: Prepare the appropriate Journal entry on December 31, 2018, to properly value the bonds assuming the bonds are classified as: (If no entry is required for a transaction/event, select "No Journal entry required in the first account field.) 1. Trading securities. 2. Securities available for sale. 3. Held-to-maturity securities. View transaction list View journal entry...
On January 1, 2018, Bishop Company issued 10% bonds dated January 1, 2018, with a face...
On January 1, 2018, Bishop Company issued 10% bonds dated January 1, 2018, with a face amount of $19.3 million. The bonds mature in 2027 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations to the...
On July 2, 2018, Astrotech Inc. purchased $440,000 of Sain Corp. 4 % bonds at a...
On July 2, 2018, Astrotech Inc. purchased $440,000 of Sain Corp. 4 % bonds at a price to yield a market interest rate of 5 %. The bonds pay interest semi- annually on July 1 and January 1, and mature on July 1, 2028. Astrotech plans to hold this investment until it matures. At December 31, 2018, which is the year end for both companies, the bonds were trading at 94 (this means 94 % of maturity value). Part 1...
On January 1, a company purchased 3%, 15-year corporate bonds for $42,359,796 as an investment. The...
On January 1, a company purchased 3%, 15-year corporate bonds for $42,359,796 as an investment. The bonds have a face amount of $60 million and are priced to yield 6%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31. Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31. Answer is complete but not entirely correct. Complete this question by...
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...
On January 1, 2018, Blshop Company Issued 8 % bonds dated January 1, 2018, with a...
On January 1, 2018, Blshop Company Issued 8 % bonds dated January 1, 2018, with a face amount of $20.7 million. The bonds mature In 2027 (10 years). For bonds of similar risk and maturity, the market yleld Is 10 %. Interest Is pald semlannually on June 30 and December 31. (FV of $1, PV of $1. FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1 (Use appropriete factor(s) from the tables provided. Round your intermedilate...
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 $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: Allowance...
On January 1, Year 1. Investor, Inc. acquired 40% of the outstanding common stock of Investee...
On January 1, Year 1. Investor, Inc. acquired 40% of the outstanding common stock of Investee Co, for $530,000. Investee's net assets on that date totaled $1.2 million. Any excess of cost over book value is attributable to a trade name with a 20-year remaining life. Investee immediately began supplying inventory to Investor as follows: Year Year Year 2 Transfer Price $100,000 $150,000 Cost to Investec $70,000 $96,000 Amount Held by Investor at Year-End (at Transfer Price) $25,000 $45,000 Inventory...
On January 1, 2018, Hoosier Company purchased $948,000 of 10% bonds at face value. The bond market value was $989,000 on December 31, 2018. Required: Prepare the appropriate Journal entry on December 31, 2018, to properly value the bonds assuming the bonds are classified as: (If no entry is required for a transaction/event, select "No Journal entry required in the first account field.) 1. Trading securities. 2. Securities available for sale. 3. Held-to-maturity securities. View transaction list View journal entry...
On July 2, 2018, Astrotech Inc. purchased $440,000 of Sain Corp. 4 % bonds at a price to yield a market interest rate of 5 %. The bonds pay interest semi- annually on July 1 and January 1, and mature on July 1, 2028. Astrotech plans to hold this investment until it matures. At December 31, 2018, which is the year end for both companies, the bonds were trading at 94 (this means 94 % of maturity value). Part 1...
On January 1, a company purchased 3%, 15-year corporate bonds for $42,359,796 as an investment. The bonds have a face amount of $60 million and are priced to yield 6%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31. Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31. Answer is complete but not entirely correct. Complete this question by...
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...
On January 1, 2018, Blshop Company Issued 8 % bonds dated January 1, 2018, with a face amount of $20.7 million. The bonds mature In 2027 (10 years). For bonds of similar risk and maturity, the market yleld Is 10 %. Interest Is pald semlannually on June 30 and December 31. (FV of $1, PV of $1. FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1 (Use appropriete factor(s) from the tables provided. Round your intermedilate...
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: Allowance...
On January 1, Year 1. Investor, Inc. acquired 40% of the outstanding common stock of Investee Co, for $530,000. Investee's net assets on that date totaled $1.2 million. Any excess of cost over book value is attributable to a trade name with a 20-year remaining life. Investee immediately began supplying inventory to Investor as follows: Year Year Year 2 Transfer Price $100,000 $150,000 Cost to Investec $70,000 $96,000 Amount Held by Investor at Year-End (at Transfer Price) $25,000 $45,000 Inventory...
Most questions answered within 3 hours.
-
Why doesn't a small piece of uranium go naturally into a chain
reaction?
A) A small...
asked 35 seconds from now -
Last year’s freshman class at Big State University totaled 5,324
students. Of those, 1,254 received a...
asked 7 minutes ago -
The transverse displacement of a stretched string from
equilibrium as a function of time and position...
asked 11 minutes ago -
Do a detailed SWOT analysis for a small Agribusiness company in
Brazil
asked 11 minutes ago -
Which two measures of excellence are often in
conflict/contradiction with each other (and therefore difficult to...
asked 10 minutes ago -
Which of the following factors does not
negatively impact operating cash flows?
Group of answer choices...
asked 12 minutes ago -
How
is the relative placement handled with the Interstate Compact
Placement of children?
asked 15 minutes ago -
Overall, the Miles Per Gallon for customers of MallState is
normally distributed around 34 MPG with...
asked 28 minutes ago -
Under Armour, a multinational sports apparel company plans entry
into a new geographical location, Vietnam, considered...
asked 29 minutes ago -
An x-ray photon is scattered from a free electron (mass m) at
rest. The wavelength of...
asked 31 minutes ago -
Which pickup should be purchased by Northwest Construction for
use by its job superintendent? How much...
asked 43 minutes ago -
Explain two features of the Affordable Care Act that are likely
to cause an increase in...
asked 45 minutes ago