PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE. THANK YOU!
Ans.
Requirement 1
Date | General Journal | Debit | Credit |
July 01,2021 | Investment in Bond | 250.00 | |
Discount on Bond Investment | 40.00 | ||
Cash | 210.00 |
Requirement 2
Date | General Journal | Debit | Credit |
Dec 31,2021 | Cash ($ 250 * 8% * 1/2) | 10.00 | |
Discount on Bond | 0.50 | ||
Interest Revenue (210 * 10% * 1/2) | 10.50 |
Requirement 3
Note:
Fair market Value | 220.00 | |
Book Value | 250.00 | |
Less: Discount (40 - 0.5) | (39.50) | 210.50 |
Increase in value | 9.50 |
Date | General Journal | Debit | Credit |
Dec 31,2021 | Fair Value Adjustment | 9.50 | |
Unrealized Holding Gain | 9.50 |
Requirement 4
Note:
Fair market Value | 200.00 | |
Book Value | 250.00 | |
Less: Discount (40 - 0.5) | (39.50) | 210.50 |
Decrease in value | (10.50) |
Fair Value Adjustment | |
9.50 | 20.00 |
10.50 |
Part 1
Date | General Journal | Debit | Credit |
Jan 02,2022 | Unrealized Holding Loss | 20.00 | |
Fair Value Adjustment ( 9.5 + 10.5) | 20.00 |
Part 2
Date | General Journal | Debit | Credit |
Jan 02,2022 | Fair Value Adjustment | 10.50 | |
Reclassification Adjustment - OCI | 10.50 |
Part 3
Date | General Journal | Debit | Credit |
Jan 02,2022 | Cash | 200.00 | |
Loss | 10.50 | ||
Discount on Bond Investment | 39.50 | ||
Investment in Bonds | 250.00 |
PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE. THANK YOU! Exercise 12-10 (Algo) Available-for-sale...
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