Mind Tap- Cengage Learninggagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=falseеВookShow Me HowE CalculatorEntries for Bond (Held-to-Maturity) InvestmentsInstructionsChart of AccountsJournal(XInstructionsBula Investments acquired $245,200 of Effenstein Corp., 5% bonds at their face amount on October 1, 20Y1. The bonds payinterest on October 1 and April 1. On April 1, 20Y2, Bula sold $112,000 of Effenstein Corp. bonds at 101.Required:Journalize the entries to record the followinga. The initial acquisition of the Effenstein Corp. bonds on October 1, 20Y1 -b. The adjusting entry for 3 months of accrued interest earned on the Effenstein Corp. bonds on December 31,20Y1."c. The receipt of semiannual interest on April 1, 20Y2. "d. The sale of $112,000 of Effenstein Corp. bonds on April 1, 20Y2, at 101."e. The receipt of the face value of the remaining bonds at their maturity on October 1, 20Y8.*"Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines forCheck My WorkAll work saved.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following investment account was taken from the general ledger of One Dream Investment Company: Debt Investments - Fulfilled Dream 6% bonds (2,000,000 face value, due December 31, 2027) Date PR Debit Credit Balance January 2, 2022 VR P1,812,300 P1,812,300 June 30, 2022 CRJ 60,000 1,752,300 Dec. 31, 2022 CRJ 60,000 1,692,300 Dec. 31, 2022 195,000 1,497,300 In the course of your examination, you obtained the following information: Interest checks were received on June 30 and December 31 and were credited to the investment account. One dream sold P200,000 of its investment on December 31, 2022 for P195,000. Effective interest rate on this investment, as computed by your audit staff, is 8%. One Dream included this investment in a portfolio that is held to collect and for sale. The fair value at December 31, 2022 and 2023 is 97.5 and 105, respectively. Question 1: The entry to correct the interest income for 2022…
usiness FinanceQ&A LibraryPlease provide solutions and explanation. Thank you so much. 1. Use the following information for the next three questions: On January 1, 20x1, ABC Co. acquired 10%, ₱1,000,000 bonds for ₱827,135. The bonds mature on December 31, 20x3 and pay annual interest every December 31. ABC Co. incurred transaction costs ₱80,000 on the acquisition. The effective interest rate adjusted for the effect of the transaction costs is 14%. The bonds are to be held under a “hold to collect and sell” business model. Information on fair values is as follows: December 31, 20x1…………………………….98 December 31, 20x2……………………………102 December 31, 20x3……………………………100 How much is the carrying amount of the investment on December 31, 20x1? a. 935,134 b. 1,002,000 c. 980,000 d. 965,443 How much is the unrealized gain (loss) recognized in other comprehensive income on December 31, 20x1? a. 45,866 b. (45,866) c. (37,899) d. 0 How much is the interest income recognized in 20x2? a.…
Bond (Held-to-Maturity)Investment Journalize the entries to record the following selected bond investment transactions for Marr Products: If an amount box does not require an entry, leave it blank. a. Purchased for cash $180,000 of Hotline Inc. 5% bonds at 100 plus accrued interest of $1,500. Investments-Hotline Inc. Bonds fill in the blank 58d32df6c011fb9_2 fill in the blank 58d32df6c011fb9_3 Interest Receivable fill in the blank 58d32df6c011fb9_5 fill in the blank 58d32df6c011fb9_6 Cash fill in the blank 58d32df6c011fb9_8 fill in the blank 58d32df6c011fb9_9 Feedback a. Record the investment at face value. Interest that is receivable on the date of purchase must be recorded as well. b. Received first semiannual interest payment. Cash fill in the blank a853e5026064fa2_2 fill in the blank a853e5026064fa2_3 Interest Receivable fill in the blank a853e5026064fa2_5 fill in the blank a853e5026064fa2_6 Interest Revenue…
Journalize the entries to record the following selected bond investment transactions for Marr Products: If an amount box does not require an entry, leave it blank. Question Content Areaa. Purchased for cash $96,000 of Hotline Inc. 9% bonds at 100 plus accrued interest of $1,440. blank - Select -- Select - - Select -- Select - - Select -- Select -Question Content Areab. Received first semiannual interest payment. blank - Select -- Select - - Select -- Select - - Select -- Select -Question Content Areac. Sold $64,000 of the bonds at 103 plus accrued interest of $730. blank - Select -- Select - - Select -- Select - - Select -- Select - - Select -- Select -Question Content Aread. Received face value of remaining bonds at their maturity. blank - Select -- Select - - Select -- Select -
Journalize the entries to record the following selected bond investment transactions for Dip, Inc. You MUST use the accounts outlined in the Chapter 15 narrated PowerPoint presentations – the accounts in your textbook aren’t descriptive enough. Journal entry descriptions are not required. *(Must include all supporting calculations) Date Transaction Description 4/1/2022 Purchased for cash, $50,000 of Bump, Inc. 9% bonds at 100 plus accrued interest. The bonds pay interest on January 31st and July 31st. 7/31/2022 Received the semiannual interest payment. 10/31/2022 Sold $20,000 of bonds at 104 plus accrued interest. 12/31/2022 Accrued interest. 12/31/2022 Marked the debt investments to a market value of $34,000. The debt investments are classified as available for sale investments. 12/31/2023 Market the debt investments to a market value of $31,000. The debt investments are classified as available for sale investments.
Paris Inc. began operations in Year 1. Following is a series of transactions and events involving its longtermdebt investments in available-for-sale securities.Year 1Mar. 10 Purchased Apple bonds for $30,600.Apr. 7 Purchased Ford notes for $56,250.Sep. 1 Purchased Polaroid bonds for $28,200.Dec. 31 Fair values for debt in the portfolio are Apple, $33,000; Ford, $54,600; and Polaroid, $29,400.Year 2Apr. 26 Sold all of the Ford notes for $51,250.June 2 Purchased Duracell bonds for $34,650.June 14 Purchased Sears notes for $25,200.Nov. 27 Sold all of the Polaroid bonds for $30,600.Dec. 31 Fair values for debt in the portfolio are Apple, $31,000; Duracell, $32,400; and Sears, $27,600.Year 3Jan. 28 Purchased Coca-Cola bonds for $40,000.Aug. 22 Sold all of the Apple bonds for $25,800.Sep. 3 Purchased Motorola notes for $84,000.Oct. 9 Sold all of the Sears notes for $28,800.Oct. 31 Sold all of the Duracell bonds for $27,000.Dec. 31 Fair values for debt in the portfolio are Coca-Cola, $48,000,…
As requested, I include full question. only need answer part d) https://www.bartleby.com/questions-and-answers/q1.-consider-an-allequity-firm-that-is-contemplating-going-into-debt.-the-market-value-of-equity-is-/c24b4703-bc9d-4a3a-8d7f-8964bef82326 Consider an all-equity firm that is contemplating going into debt. The market value of equity is calculated as Free Cash Flow/required rate of return. Current ProposedAssets $10,000 $18,000Debt $0 $8,000Equity $10,000 $10,000Debt/Equity ratio 0.00 1.00Interest rate n/a 7%Shares outstanding 500 500Share price $20 $20 (a) If the required rate of return on unlevered equity is 10%, fill out the following table for the company before the debt is issued: Recession Expected ExpansionEBIT $500 $1,000 $1,500Interest 0 0 0Net incomeEPSROAROE (b) If the company adds the proposed amount of debt and EBIT is expected to expand proportionally, fill out the table in (a) after the debt is issued. (c) If an investor is not happy with the debt the company…
Cheyenne Corporation purchases equity securities costing $150,900 and classifies them as available-for-sale securities. At December 31, the fair value of the portfolio is $154,700.Prepare the adjusting entry to report the securities properly. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount
G’s investment account relates to its debt investments and its equity investments. For balance sheet presentation, G includes any separate investment-related adjustment accounts with the investment account. Information about G’s investments follows: o On 06-30-21, G purchased 45, $1,000 3% bonds when similar bonds were paying 3.5%. G incurred and paid $600 of bond purchase-related costs. The bonds were dated 06-30-21, pay interest each June 30 and December 31, and mature on 06-30-25. G classified the bonds as a trading investment. As of 12-31-21, the bonds traded at 99. o On 06-30-19, G purchased 40, $1,000 5% bonds when similar bonds were paying 5%. G incurred and paid $400 of bond purchase-related costs. The bonds were dated 06-30-19 and pay interest each June 30 and December 31 and mature on 06-30-24. G classified these bonds as an available-for-sale investment. The bonds were trading at the following amounts as of the following dates:12-31-19 10012-31-20 10212-31-21 101
Bond Investment Transactions Journalize the entries to record the following selected bond investment transactions for Starks Products: For a compound transaction, if an amount box does not require an entry, leave it blank. a. Purchased for cash $102,000 of Iceline, Inc. 8% bonds at 100 plus accrued interest of $1,360, paying interest semiannually. b. Received first semiannual interest payment. c. Sold $68,000 of the bonds at 103 plus accrued interest of $780.
Bond investment transactionsJournalize the entries to record the following circled bond investmenttransactions for Starks Products: A. Purchased for cash $120,000 of Iceline.inc, 5% bonds at 100 plusaccrued interest of $1,000.B. Received first semiannual interest paymentC. Sold $60,000 of the bonds at 101 plus accrued interest of $505.
Classifying Investments in Securities Match each security listed below with its usual classification: (1) trading securities, (2) available-for-sale securities, (3) equity method securities, (4) held-to-maturity securities, or (5) equity securities measured at FV-NI. a. Abbot common stock, no-par; acquired to use temporarily idle cash with intent to sell next month. b. 30% interest in Packaging Inc.; acquired to drive costs down through vertical integration. c. Mack stock held in trading account. d. Hasten Inc.'s 10-year bonds acquired. Hasten intends to hold to maturity, but may need to sell the bonds earlier for cash. e. Staufer common stock, par $5; acquired to gain a significant influence, but not control. f. Frazer bonds, 9% mature at the end of 10 years; acquired with the intent and ability to hold for 10 years. g. Foreign Corp. common stock; a 30% interest acquired, but difficulties encountered in an attempt to obtain representation on the Foreign…

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