Answer 1 & 2. | ||||
Journal Entry | ||||
Date | Particulars | Dr. Amt. | Cr. Amt. | |
1-Jul-18 | Investment in Bonds | 240.00 | ||
Cash | 200.00 | |||
Discount on Bonds | 40.00 | |||
(record the purchase of bonds) | ||||
31-Dec-18 | Cash | 9.60 | $240 X 8% X 6/12 | |
Discount on Bonds | 0.40 | |||
Interest Revenue | 10.00 | $200 X 10% X 6/12 | ||
(Record the interest received) | ||||
Answer 3. | ||||
Journal Entry | ||||
Date | Particulars | Dr. Amt. | Cr. Amt. | |
31-Dec-18 | Fair Value Adjustment | 9.60 | $210 - ($200 + $0.40) | |
Net Unrealized Holding Gains & Losses - I/S | 9.60 | |||
(record the fair value adjustment) | ||||
Answer 4. | ||||
Journal Entry | ||||
Date | Particulars | Dr. Amt. | Cr. Amt. | |
2-Jan-19 | Cash | 190.00 | ||
Discount on Bonds | 39.60 | $40 - $0.40 | ||
Loss on Sale of Bonds | 10.40 | |||
Investment in Bonds | 240.00 | |||
(Record the sale of Bonds) | ||||
2-Jan-19 | Net Unrealized Holding Gains & Losses - I/S | 9.60 | ||
Fair Value Adjustment | 9.60 |
Exercise 12-10 Available-for-sale securities [LO12-1, 12-4] Tanner-UNF Corporation acquired as a long-term investment $240 million of...
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...
Exercise 12-10 (Algo) Available-for-sale securities [LO12-1, 12-4) Tanner-UNF Corporation acquired as a long-term investment $260 million of 7% 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 9% for bonds of similar risk and maturity. Tanner-UNF paid $220 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...
Tanner-UNF Corporation acquired as a long-term investment $260 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 $220 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 $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 $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 $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,...
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...
Tanner-UNF Corporation acquired as a long-term investment $240 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 $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...
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 $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...