Colah Company purchased $3.0 million of Jackson, Inc. 5% bonds at par on July 1, 2018, with interest paid semi-annually. When the bonds were acquired Colah decided to elect the fair value option for accounting for its investment. At December 31, 2018, the Jackson bonds had a fair value of $3.40 million. Colah sold the Jackson bonds on July 1, 2019 for $2,700,000.
Required:
1. Prepare Colah’s journal entries for above
transaction.
2. Fill out the following table to show the effect
of the Jackson bonds on Colah’s net income, other comprehensive
income, and comprehensive income for 2018, 2019, and cumulatively
over 2018 and 2019.
Colah Company purchased $3.0 million of Jackson, Inc. 5% bonds at par on July 1, 2018,...
Colah Company purchased $2.7 million of Jackson, Inc., 5% bonds at par on July 1, 2018, with interest paid semi-annually. Colah determined that it should account for the bonds as an available-for-sale investment. At December 31, 2018, the Jackson bonds had a fair value of $3.07 million. Colah sold the Jackson bonds on July 1, 2019 for $2,430,000. The purchase of the Jackson bonds on July 1. Interest revenue for the last half of 2018. Any year-end 2018 adjusting entries....
Colah Company purchased $1.6 million of Jackson, Inc., 6% bonds at par on July 1, 2018, with interest paid semi-annually. Colah determined that it should account for the bonds as an available for sale investment. At December 31, 2018: the Jackson bonds had a fair value of $1.86 million Colah sold the Jackson bonds on July 1, 2019 for $1.440,000 a. The purchase of the Jackson bonds on July 1 b. Interest revenue for the last half of 2018 C....
Colah Company purchased $1,700,000 of Jackson, Inc., 5% bonds at their face amount on July 1, 2021, with interest paid semi-annually. The bonds mature in 20 years but Colah planned to keep them for less than 3 years, and classified them as available for sale investments. When the bonds were acquired Colah decided to elect the fair value option for accounting for its investment. At December 31, 2021, the Jackson bonds had a fair value of $1,970,000. Colah sold the...
Colah Company purchased $1,000,000 of Jackson, Inc., 5% bonds at their face amount on July 1, 2021, with interest paid semi- annually. The bonds mature in 20 years but Colah planned to keep them for less than 3 years, and classified them as available for sale Investments. When the bonds were acquired Colah decided to elect the fair value option for accounting for its Investment. At December 31, 2021, the Jackson bonds had a fair value of $1,200,000. Colah sold...
Colah Company purchased $1 million of Jackson, Inc., 8% bonds at paron July 1 2018, with interest paid semi-annually. Colah determined that it should account for the bonds as an available for sale investment. At December 31, 2018, the Jackson bonds had a fair value of $131 million. Colah sold the Jackson bonds on July 1 2019 for $990,000 a. The purchase of the Jackson bonds on July 1 binterest revenue for the last half of 2018 c. Any year-end...
Colah Company purchased $1,900,000 of Jackson, Inc., 7% bonds at par on July 1, 2021, with interest paid semi-annually. Colah determined that it should account for the bonds as an available-for-sale investment. At December 31, 2021, the Jackson bonds had a fair value of $2,190,000. Colah sold the Jackson bonds on July 1, 2022 for $1,710,000. Required: 1. Prepare Colah's journal entries for the following transactions: a. The purchase of the Jackson bonds on July 1. b. Interest revenue for...
Exercise 12-12 Available-for-sale securities (L012-1, 12-4) Colah Company purchased $1.6 million of Jackson, Inc., 6% bonds at par on July 1, 2018, with interest pald semi-annually. Colah determined that it should account for the bonds as an available for sale investment. At December 31, 2018, the Jackson bonds had a fair value of $1.86 millon. Colah sold the Jackson bonds on July 1, 2019 for $1.440,000 a. The purchase of the Jackson bonds on July 1 b. Interest revenue for...
Exercise 12-26 (Algo) Fair value option; available-for-sale investments [LO12-2, 12-3, 12-8] Colah Company purchased $2,700,000 of Jackson, Inc., 5% bonds at their face amount on July 1, 2021, with interest paid semi- annually. The bonds mature in 20 years but Colah planned to keep them for less than 3 years, and classified them as available for sale investments. When the bonds were acquired Colah decided to elect the fair value option for accounting for its investment. At December 31, 2021,...
Colah Company purchased $2,600,000 of Jackson, Inc., 6% bonds at their face amount on July 1, 2021, with interest paid semi-annually. The bonds mature in 20 years but Colah planned to keep them for less than 3 years, and classified them as available for sale investments. When the bonds were acquired Colah decided to elect the fair value option for accounting for its investment. At December 31, 2021, the Jackson bonds had a fair value of $2,960,000. Colah sold the...
PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE. THANK YOU! Exercise 12-26 (Algo) Fair value option; available-for-sale Investments [LO12-2, 12-3, 12-8] Colah Company purchased $2,400,000 of Jackson, Inc., 6% bonds at their face amount on July 1, 2021, with Interest pald semi- annually. The bonds mature in 20 years but Colah planned to keep them for less than 3 years, and classified them as available for sale Investments. When the bonds were acquired Colah decided to elect the...