AI Tool and Dye issued 8% bonds with a face amount of $160 million on January 1, 2021. The bonds sold for $150 million. For bonds of similar risk and maturity the market yield was 9%. Upon issuance, AI elected the option to report these bonds at their fair value. On June 30, 2021, the fair value of the bonds was $145 million as determined by their market value on the NASDAQ. Will AI report a gain or will it report a loss when adjusting the bonds to fair value? If the change in fair value is attributable to a change in the interest rate, did the rate increase or decrease? Will the gain or loss be reported in net income or as OCI?

On February 1, 2020, SouthCo purchased $100,000,000 in 5% bonds that will mature in 4 years. Management's business model is to sell the investment if market prices rise to a specific price, but will also hold and collect investment income at the present time. For bonds of similar risk and maturity, the market yield was 7%. Interest is received semiannually on July 31 and January 31. Due to changing market conditions, the fair value of the bonds at January 31, 2021, was $80,000,000. SouthCo follows IFRS.Answer the following questions. Please make sure your final answer(s) are accurate to the nearest whole number. For simplicity, ignore any tax effects and expected credit losses (ECL) estimated at the time of the investment's acquisition. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan).a) Prepare the journal entry to record SouthCo's investment on February 1, 2020.b) Prepare the…

The balance sheet at December 31, 2016, for Nevada Harvester Corporation includes the liabilities listed below: a. 11% bonds with a face amount of $40 million were issued for $40 million on October 31, 2007. The bonds mature on October 31, 2027. Bondholders have the option of calling (demanding payment on) the bonds on October 31, 2017, at a redemption price of $40 million. Market conditions are such that the call is not expected to be exercised. b. Management intended to refinance $6 million of its 10% notes that mature in May 2017. In early March, prior to the actual issuance of the 2016 financial statements, Nevada Harvester negotiated a line of credit with a commercial bank for up to $5 million any time during 2017. Any borrowings will mature two years from the date of borrowing. c. Noncallable 12% bonds with a face amount of $20 million were issued for $20 million on September 30, 1994. The bonds mature on September 30, 2017. Sufficient cash is expected to be available to retire…

Myriad Solutions, Inc. issued 10% bonds, dated January 1, with a face amount of $320 million on January 1, 2021, for $283,294,720. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Required:Complete the table below to calculate the amounts related to the bonds that Myriad would report in its financial statements.Indicate the amounts reported on the financial statements below for the year ending December 31, 2021. Indicate the amounts reported on the financial statements below for the year ending December 31, 2021 (Any outflow of cash should be indicated by a minus sign. Round your answers to the nearest whole dollar.) I was able to to calculate the correct amounts but I am having troubling knowing where to place what on the financial statements.

General Corporation purchased $938,000 of bonds with a coupon rate of 10% at face value on December 5, 2021. The market price of the bond was $984,000 on December 31, 2021. Required: Prepare the appropriate journal entry on December 31, 2021, to properly value the bonds assuming the bonds are classified as: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Ignore the journal entry for coupon payment and interest recognition. 1. Trading securities. 2. Securities available-for-sale. 3. Held-to-maturity securities. View transaction list Journal entry worksheet 1 2 3 > Record the unrealized holding gain or loss for securities available-for-sale. Note: Enter debits before credits. Transaction General Journal Debit Credit 2

On January 1, 2024, Rapid Airlines issued $205 million of its 6% bonds for $188 million. The bonds were priced to yield 8%. Interest is payable semiannually on June 30 and December 31. Rapid Airlines records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2024, the fair value of the bonds was $194 million as determined by their market value in the over-the-counter market. Rapid determined that $1,000,000 of the increase in fair value was due to a decline in general interest rates.   Record entry to adjust the bonds to their fair value for presentation in the December 31, 2024, balance sheet.

On January 1, 2024, Rapid Airlines issued $260 million of its 10% bonds for $240 million. The bonds were priced to yield 12%. Interest is payable semiannually on June 30 and December 31. Rapid Airlines records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2024, the fair value of the bonds was $249 million as determined by their market value in the over-the-counter market. Rapid determined that $1,000,000 of the increase in fair value was due to a decline in general interest rates. Required: 1. to 3. Prepare the journal entries to record interest on June 30, 2024 (the first interest payment), on December 31, 2024 (the second interest payment) and to adjust the bonds to their fair value for presentation in the December 31, 2024, balance sheet.

A company purchased bonds on July 1, 2024, for $193,404. This price represents a market rate of 9% on bone that have a face amount of $200,000, have a stated rate of 8%, pay semiannual interest, and mature in 4 year As of December 31, 2024, the fair value of the bonds has increased to $195,000. Assuming the investment is classified as held-to-maturity securities, what amount would the company report for its investment in bonds o December 31, 2024?

The balance sheet of Indian River Electronics Corporation as of December 31, 2020, included 13.25% bonds having a face amount of $90.4 million. The bonds had been issued in 2013 and had a remaining discount of $3.4 million at December 31, 2020. On January 1, 2021, Indian River Electronics called the bonds before their scheduled maturity at the call price of 104. Required: Prepare the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet

AI Tool and Dye issued 8% bonds with a face amount of $160 million on January 1, 2018. The bonds sold for$150 million. For bonds of similar risk and maturity the market yield was 9%. Upon issuance, AI elected theoption to report these bonds at their fair value. On June 30, 2018, the fair value of the bonds was $145 millionas determined by their market value on the NASDAQ. Will AI report a gain or will it report a loss when adjusting the bonds to fair value? If the change in fair value is attributable to a change in the interest rate, did the rateincrease or decrease? Will the gain or loss be reported in net income or as OCI?