Vilna Ltd., during the year ended December 31, 2021, had the following transactions related to money-market instruments recorded at amortized cost: 2 Purchased a 120-day $100,000 treasury bill maturing on April 1 for $95,700. 1 The treasury bill matured. 1 Invested $75,000 in a money-market fund. 31 Received notification that $188 of interest had been earned and added to the fund. 30 Received notification that $188 of interest had been earned and added to the fund. 15 Cashed the money-market fund and received $75,470. 1 Purchased a 90 day, 2%, $40,000 treasury bill for $39,221. Jan. Apr. Aug. Sept. Oct. Nov. Instructions: a. Prepare the journal entries to record the above transactions. b. Prepare any required adjusting journal entries at December 31. Round amounts to the nearest dollar. Show ALL calculations for full marks.

Vilna Ltd., during the year ended December 31, 2021, had the following transactions related to money-market instruments recorded at amortized cost: 2 Purchased a 120-day $100,000 treasury bill maturing on April 1 for $95,700. 1 The treasury bill matured. 1 Invested $75,000 in a money-market fund. 31 Received notification that $188 of interest had been earned and added to the fund. 30 Received notification that $188 of interest had been earned and added to the fund. 15 Cashed the money-market fund and received $75,470. 1 Purchased a 90 day, 2%, $40,000 treasury bill for $39,221. Jan. Apr. Aug. Sept. Oct. Nov. Instructions: a. Prepare the journal entries to record the above transactions. b. Prepare any required adjusting journal entries at December 31. Round amounts to the nearest dollar. Show ALL calculations for full marks.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 15E: Investments On October 4, 2019, Collins Company purchased 100 bonds of Steph Company for 6,400 as a...

See similar textbooks

Similar questions

On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major customer in exchange for used equipment. The equipment had originally cost Park 200,000 and had a book value of 20,000 on the date of the sale. At the 12% imputed interest rate for this type of loan, the present value of the note is 25,500 on January 1, 2019. Park uses the effective interest rate. What is the carrying value of the note receivable on Parks December 31, 2019, balance sheet? a. 28,560 b. 29,000 c. 32,500 d. 36,000
Investments On October 4, 2019, Collins Company purchased 100 bonds of Steph Company for 6,400 as a short-term investment in securities classified as available for sale. On December 31, 2019, the bonds had a fair value of 6,300, and on February 8, 2020, Collins sold the bonds for 6,700. Required: In journal entry form, prepare the spreadsheet entries to record these transactions for Collins Companys 2019 and 2020 statement of cash flows.
Dunn Company recognized a 5,000 unrealized holding gain on investment in Starbuckss long-term bonds during 2019. The company classified its investment as an available-for-sale security. How would this information be reported on a statement of cash flows prepared using the indirect method?
During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 loss
Refer to the information in RE13-5. Assume that on December 31, 2019, the investment in Smith Corporation bonds has a market value of 12,500. Prepare the year-end journal entry to record the unrealized gain or loss.