the equity method. Description Debit ce Corp. bonds have a fair value of $253,630 on December 31, 20Y5. Valuation Allo Sale Investments had a balance of zero on January 1. 20Y5.

Q: Counting Inc. began operations in Year 1, following is a series of transactions and events involving…

A:

Q: Bonds Payable has a balance of $952,000 and Premium on Bonds Payable has a balance of $10,472. If…

A: Redemption value of Bonds = $952,000 * 102% Redemption value of Bonds = $971,040   Premium on Bonds…

Q: Bonds Payable has a balance of $900,000 and Premium on Bonds Payable has a balance of $10,000.  If…

A: Redemption of Bonds: The process of repaying the sale amount of bonds to bondholders at the time of…

Q: A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The…

A: Cash proceeds = $206,948 Par value = $200,000 Premium = 206,948-200,000 = $6,948

Q: Flounder Corporation purchased trading investment bonds for $59,000 at par. At December 31, Flounder…

A: Solution: Journal entries of Flounder  is as under:

Q: G’s investment account relates to its debt investments and its equity investments. For balance sheet…

A: G's Investment as follows: Particulars Bond held as Trading Investment Bond held as Available for…

Q: Bonds Payable has a balance of $1,200,000 and Premium on Bonds Payable has a balance of $18,750. If…

A:

Q: Paris Inc. began operations in Year 1. Following is a series of transactions and events involving…

A: Fair Value Adjustment: It is an  accounting process  to reassess the fair value  if  there is a…

Q: A company received cash proceeds of 206,948 on a bond issue with a par value of 200,000. the…

A: Accounting's goals include keeping a systematic record of all financial transactions in a book of…

Q: On October 1, 2018, North Co. invested excess cash of $80,000 by purchasing bonds of South Inc. At…

A: Adjusting entries are prepared at the end of the accounting period in order to ensure the accrual…

Q: Bonds Payable has a balance of $880,000 and Premium on Bonds Payable has a balance of $9,680. If the…

A: Amount paid on redemption = Face value of bonds x redemption price /100 = $880,000 x 102/100 =…

Q: CCC Corp. had the following long-term debt at December 31: Collateral trust bonds, having securities…

A: Long term bonds are the bonds which have a maturity of more than one year. The classification…

Q: On January 1, Vega Company purchased as an investment a $1,000, 6% bond for $1,000. The bond pays…

A: Bond is an instrument issued by corporates to public which comes with fixed interest rate. A bond…

Q: Banaba Company had the following transactions in bond investment held as trading for the current…

A: For Accounting in the case of investments. 1) Short-term investments i.e Current investments are to…

Q: A company issued 11%, 5-year bonds with a par value of $105.000. The market rate when the bonds were…

A: Here in this question we are require to calculate the interest amount that needs to record. When…

Q: Stuart Corp. purchased $80,000 of Dumb Co. bonds and $120,000 of Silly Inc. bonds. Both investments…

A: Trading securities are the securities which are held for the trading securities. These securities…

Q: Bonds Payable has a balance of $1,005,000 and Discount on Bonds Payable has a balance of $10,050. If…

A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…

Q: (Conversion of Bonds) Vargo Company has bonds payable outstanding in the amount of $500,000, and the…

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: Bay Company had P600,000, convertible 8% bonds payable outstanding on June 30. Each P1,000 bond was…

A: Working note: Journal entry for the bond conversion: Date Account titles and explanation Debit…

Q: On June 1, $50,000 of bonds were purchased between interest dates. The brokerage commission was…

A: Total Cost of bonds includes cost, brokerage, commission, etc.

Q: A company insued 4%, 15year bonds with a par valut of 5300 000 that pay interest annually Thie…

A: Interest on bonds is payable on face value. And Interest rate is the coupon rate.

Q: Weaver Company has the following data at December 31, 2015 for its securities: Securities COST FAIR…

A: Trading Securities: These are the debt or equity investments, purchased by the company with the…

Q: Accounting on 7/2/Y1 Loch Ness, Inc. purchased 50 of the $1,000 face bonds issued by EBerry Corp.…

A: Investment- Investment is defined as the purchase of an asset in order to generate income or capital…

Q: Yale Co. purchased a bond on October 4 of the current year for $45,000 and classified it as…

A: A security which has been classified as a Available for sale is to be reported at fair value at the…

Q: In footnotes to its year-end annual report, Bancfirst Corp. reported that held-to-maturity debt…

A: The question is related to held to maturity debt securities. Held-to-maturity (HTM) securities are…

Q: On January 1, 2018, for $17.4 million, Cenotaph Company purchased 8% bonds, dated January 1, 2018,…

A: Req-1       Date  Account Titles & Explanation   Debit   Credit  June 30, 2018  Cash…

Q: The company has outstanding bonds payable with a total face value of $100,000. On July 1, the…

A: Introduction: Journals: Recording of a business transactions in  a chronological order. First step…

Q: On July 1, 20x7, Morning Co. received P103,288 for ₱100,000 face amount, 12% bonds, a price that…

A: Interest expenses on bond issued is given by  Ie =issue price * market yield of bond * period =…

Q: 1) Presented below are three independent situations. igel Corporation retired Tk. 130,000 face…

A: The journal entry is the book to record the transaction. Recording the transaction as per the…

Q: Bonds Payable has a balance of $1,091,000 and Discount on Bonds Payable has a balance of $13,092. If…

A: Step 1: Calculate the carrying amount of bonds payable on the redemption rate.

Q: The following are two independent situations. 1.   Sandhill Corporation redeemed $130,500 face…

A: Journal entry is a recording of a financial transaction of a business with debit and credit columns…

Q: Balance sheet and income statement data indicate the following: Bonds payable, 10% (due in two…

A: Times interest earned ratio = Earnings before interest and tax/Interest expense

Q: Accounting Bonds Payable has a balance of $957,000 and Discount on Bonds Payable has a balance of…

A: Where Bonds are issued at a price lower than it's face value, there arises a discount/loss on issue.…

Q: The following investment account was taken from the general ledger of One Dream Investment Company:…

A: Question 1  Debit to the investment account by P120000 (P60000 due on June 30,2022 and P60000 due on…

Q: On December 31, the bonds had a fair value of $203,700. The entry to record the year-end adjustment…

A: At the time of reporting period, the gain or loss on holding the bond should be accounted. If the…

Q: 17,062 on Jan 1. Market rate is 6%. Prepare journal entries for the following. a. Sale on Jan 1 b.…

A: A journal entry is a record of a commercial transaction in a organization's accounting system. When…

Q: Required: (a) Prepare the journal entry to record the issuance of the bonds. (b) Prepare the…

A: Bond:    Bonds are long-term debt issued with a defined terms and conditions. Bonds are generally…

Q: Stuart Corp. purchased $80,000 of Dumb Co. bonds and $120,000 of Silly Inc. bonds. Both investments…

A: Trading securities are always and recorded at fair value. Any change in book value and fair value of…

Q: On January 2,22 , Hoosier Company purchased $930,000 of 10% bonds at face  value. The bond market…

A: As per IAS 39, Financial instrument recognition and measurement standard, A financial  asset held…

Q: Paris Inc. began operations in Year 1. Following is a series of transactions and events involving…

A:

Q: Wildhorse Corporation issued $410,000 of 10-year bonds at a discount. Prior to maturity, when the…

A: Solution: Face value of bond= $410,000 Carrying value of bond prior to redemption = $379,250…

Q: On September 1, Year 2, the 401 Company acquired P1,000,000 face value, 12% bonds of Key Company at…

A: The bonds are the financial instruments that are used for investment purpose by the company.

Q: he entry to record the redemption would include a

A: The correct option is: d.gain on bond redemption of $12,240. Gain on bond redemption is calculated…