Hi I need help with these two tables! Much appreciated
Solution:
Journal Entries - Mills Corporation | ||||
Event | Date | Particulars | Debit (In Million) | Credit (In Million) |
1 | 1-Jul-18 | Investment in Bond Dr | $240.00 | |
Premium on bond investment Dr | $40.00 | |||
To Cash | $280.00 | |||
(Being investment in bond recorded) | ||||
2 | 31-Dec-18 | Cash Dr ($240 * 6% * 6/12) | $7.20 | |
To Premium on bond investment | $1.60 | |||
To Interest revenue ($280*4%*6/12) | $5.60 | |||
(Being revenue recoginition for bond interest and discount amortized) | ||||
3 | 31-Dec-18 | Unrealized holding gain or loss - OCI Dr | $8.40 | |
To Fair value adjustment Dr ($280 - $270 - $1.60) | $8.40 | |||
(Being adjusting entry to record investment at fair value) | ||||
4 | 2-Jan-19 | Fair value adjustment Dr | $8.40 | |
To Reclassification adjustment - OCI | $8.40 | |||
(Being reversal of fair value adjustment at the time of sale) | ||||
5 | 2-Jan-19 | Cash Dr | $290.00 | |
To Preimum on bond investment | $38.40 | |||
To Investment in Bond | $240.00 | |||
To Gain on sale of investment | $11.60 | |||
(To record sale of investment) |
Hi I need help with these two tables! Much appreciated Mills Corporation acquired as a long-term...
Tanner-UNF Corporation acquired as a long-term investment $280 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 $240 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 $250...
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,...
Check B Exercise 12-6 (Algo) Trading securities (L012-1, 12-3) Mills Corporation acquired as an investment $200 million of 7% bonds, dated July 1, on July 1, 2021. Company management is holding the bonds in its trading portfolio. The market interest rate yield) was 5% for bonds of similar risk and maturity. Mills paid $240 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...
Only need the answers for fhe second journal entry on number
4.
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...
Only need the answers for fhe second journal entry on number
4.
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...
Mills Corporation acquired as a long-term investment $200 million of 7% bonds, dated July 1, on July 1, 2018. Mills determined that it should account for the bonds as an available-for-sale investment. The market interest rate (yield) was 5% for bonds of similar risk and maturity. Mills paid $240 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...
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...
Mills Corporation acquired as a long-term investment $200 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 5% for bonds of similar risk and maturity. Mills paid $240 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...
I will give thumbs up for correct answers! Thank you!
Tanner-UNF Corporation acquired as a long-term investment $270 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 (yield) was 10% for bonds of similar risk and maturity. Tanner-UNF paid $230 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the...
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...