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 | $240.00 | |
To Cash | $200.00 | |||
To Discount on bond investment | $40.00 | |||
(Being investment in bond recorded) | ||||
2 | 31-Dec-18 | Cash Dr ($240 * 7% * 6/12) | $8.40 | |
Discount on bond investment Dr | $0.60 | |||
To Interest revenue ($200*9%*6/12) | $9.00 | |||
(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 ($210 - $200 - $0.60) | $9.40 | |
To Unrealized holding gain or loss - NI | $9.40 | |||
(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 | $9.40 | |
To Fair value adjustment | $9.40 | |||
(Being reversal of fair value adjustment at the time of sale) | ||||
2 | 2-Jan-19 | Cash Dr | $190.00 | |
Discount on bond investment Dr | $39.40 | |||
Loss on sale of investment Dr | $10.60 | |||
To Investment in Bond | $240.00 | |||
(To record sale of investment) |
apter 12 HW Problems 6 Help S 3 Exercise 12-5 Trading securities [L012-2] as a long-term...
Exercise 12-5 Trading securities (LO12-2] 2.22 points 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 is holding the bonds in its trading portfolio. As a result of changing market conditions, the fair value of...
Exercise 12-5 Trading securities (LO12-2] Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1 2018. The market interest rate (yield) was 8% for bonds of similar risk and maturity Tanner-UNF paid $200 million for the bands The company will receive interest semiannually on June 30 and December 31 Company management is holding the bonds in its trading portfolio. As a result of changing market conditions, the fair value of the bonds...
2 HW Problems Exercise 12-1 Securities held-to-maturity; bond investment; effective interest, discount [LO12-1 Tanner-UNF Corporation acquired as a long-term I investment $170 million of 6.0% bonds, dated July 1, on July 1, 2018, Company ent has the positive intent and abilty to hold the bonds until maturity. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $140.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31....
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...
SUBM 4 Check my work Tanner-UNF Corporation acquired as a long-term investment $190 million of 8.0 % 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 10 % for bonds of similar risk and maturity. Tanner-UNF paid $160.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions,...
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...
4 only. TannerUNF Corporation acquired as a long term Investment $240 mallon of 8% bonds, dated July , on July , 2018.. The market interest rate tyeld) was 10% for bonds of smilar risk and maturity Tanner-UNF paid $200 mmon for the bonds. The company wil receive interest semiannuality on June 30 and December 31. Company management is holding the bonds in its trading portolio. As a result of changing market conditions, the fair value of the bonds at December...
Tanner-UNF Corporation acquired as a long-term investment $290 million of 6.0% 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 7% for bonds of similar risk and maturity. Tanner-UNF paid $260.0 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...
Tanner-UNF Corporation acquired as a long-term investment $160 million of 5.0% 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 8% for bonds of similar risk and maturity, Tanner-UNF paid $130.0 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...
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...