Journal entries
No. | Date | General Journal | Debit | Ctedit |
1 | July 1,2021 | Investment in bonds a/c | 240 | |
To Discount on Bonds-investment a/c | 40 | |||
To Cash a/c | 200 | |||
[Being to record the investment in bonds] | ||||
2. | December 31,2021 |
Cash a/c {240*6%*(1/2)} |
7.2 | |
Discount on bonds a/c | 2.8 | |||
To Interest revenue a/c {200*10%*(1/2)} |
10 | |||
[Being to record the interest revenue] | ||||
3. | December 31,2021 | Fair value adjustment a/c | 7.2 | |
To Unrealized holding gain a/c | 7.2 | |||
[Being | ||||
[Being to record fair value adjustment] | ||||
4. | January 2,2022 | Cash a/c | 190 | |
Loss on sale of investment a/c {240-190-37.2} |
12.8 | |||
Discount on bonds a/c {40-2.8} |
37.2 | |||
To Investment in bonds | 240 | |||
[Being to record the sale of bonds] | ||||
5. | January 2,2022 |
unrealized loss a/c {7.2+12.8} |
20 |
|
To fair value adjustment a/c | 20 | |||
[Being to record fair value adjustment] |
Working notes[WN]:
Particulars | Amount($) | Amount($) |
Fair market value | 210 | |
Book value | 240 | |
Less:Discount [40-2.8] |
(37.2) | 202.8 |
Increase in value | 7.2 |
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DO VOTE, ALL THE BEST
HAPPY CHEGGING
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 $220 million of 6% bonds, dated July 1, on July 1, 2021. Company management has classified the bonds as an available-for-sale investment. The market interest rate yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $190 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 December 31, 2021, was...
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 interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $210...
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...
Tanner-UNF Corporation acquired as a long-term investment $250 million of 8% bonds, dated July 1, on July 1, 2021. Company management has classified the bonds as an available for sale investment. The market interest rate field) was 10% for bonds of similar risk and maturity. Tanner-UNF paid $210 million for the bonds. The company will recelve Interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31,...
Tanner-UNF Corporation acquired as a long-term investment $300 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 $250 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 cond itions, the fair value of the bonds at December 31,...
Tanner-UNF Corporation acquired as a long-term investment $300 million of 7% 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 $280 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 at December 31, 2018,...
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 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 at December 31, 2018, was $210...
Tanner-UNF Corporation acquired as a long-term investment $200 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 8% for bonds of similar risk and maturity. Tanner-UNF paid $170.0 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...
Tanner-UNF Corporation acquired as a long-term investment $260 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 9% for bonds of similar risk and maturity. Tanner-UNF paid $220.0 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...