Fleet Inc. is an athletic footware company that began operations on jan 1, 2012. the following transactions relate to debt investments acquired by Fleet Inc. which has fiscal year ending on december 31: 2012 Mar 1. Purchased $36,0000of madison Co. 5% 10-year bonds at face value plus accrued interest of $15. the bonds pay interest semiannually on february 1st and august 1 apr 16 purchased $45,0000 of Westville 4%, 15-year bonds at face value plus accrued interest semianually on april 1st and october 1st. aug 1. received semiannuall interest on the madison co. bonds sep 1 sold $12,0000 of madison co bonds at 98 plus accrued interest of $50 oct 1 received semiannual interest on westville bonds dec 31 accrued $500 interest on Madison Co. bonds dec 31 accrued $450 interest on westville bonds 2013 feb 1 received semiannual interest on the madison co bonds apr 1 received semiannual interest on the Westville bonds Instructions 1. Journalize the entries to record the transactions 2. if the bond portfolio was classified as available-for-sale, what impact would that have on financial statement disclosure
Fleet Inc. is an athletic footware company that began operations on jan 1, 2012. the following transactions relate to debt investments acquired by Fleet Inc. which has fiscal year ending on december 31: 2012 Mar 1. Purchased $36,0000of madison Co. 5% 10-year bonds at face value plus accrued interest of $15. the bonds pay interest semiannually on february 1st and august 1 apr 16 purchased $45,0000 of Westville 4%, 15-year bonds at face value plus accrued interest semianually on april 1st and october 1st. aug 1. received semiannuall interest on the madison co. bonds sep 1 sold $12,0000 of madison co bonds at 98 plus accrued interest of $50 oct 1 received semiannual interest on westville bonds dec 31 accrued $500 interest on Madison Co. bonds dec 31 accrued $450 interest on westville bonds 2013 feb 1 received semiannual interest on the madison co bonds apr 1 received semiannual interest on the Westville bonds Instructions 1. Journalize the entries to record the transactions 2. if the bond portfolio was classified as available-for-sale, what impact would that have on financial statement disclosure
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 6PA: Saverin, Inc. produces and sells outdoor equipment. On July 1, 2016, Saverin, Inc. issued 62,500,000...
Related questions
Question
Fleet Inc. is an athletic footware company that began operations on jan 1, 2012. the following transactions relate to debt investments acquired by Fleet Inc. which
has fiscal year ending on december 31:
2012
Mar 1. Purchased $36,0000of madison Co. 5% 10-year bonds at face value plus accrued interest of $15. the bonds pay interest semiannually on february 1st and august 1
apr 16 purchased $45,0000 of Westville 4%, 15-year bonds at face value plus accrued interest semianually on april 1st and october 1st.
aug 1. received semiannuall interest on the madison co. bonds
sep 1 sold $12,0000 of madison co bonds at 98 plus accrued interest of $50
oct 1 received semiannual interest on westville bonds
dec 31 accrued $500 interest on Madison Co. bonds
dec 31 accrued $450 interest on westville bonds
2013
feb 1 received semiannual interest on the madison co bonds
apr 1 received semiannual interest on the Westville bonds
Instructions
1. Journalize the entries to record the transactions
2. if the bond portfolio was classified as available-for-sale, what impact would that have on financial statement disclosure
2012
Mar 1. Purchased $36,0000of madison Co. 5% 10-year bonds at face value plus accrued interest of $15. the bonds pay interest semiannually on february 1st and august 1
apr 16 purchased $45,0000 of Westville 4%, 15-year bonds at face value plus accrued interest semianually on april 1st and october 1st.
aug 1. received semiannuall interest on the madison co. bonds
sep 1 sold $12,0000 of madison co bonds at 98 plus accrued interest of $50
oct 1 received semiannual interest on westville bonds
dec 31 accrued $500 interest on Madison Co. bonds
dec 31 accrued $450 interest on westville bonds
2013
feb 1 received semiannual interest on the madison co bonds
apr 1 received semiannual interest on the Westville bonds
Instructions
1. Journalize the entries to record the transactions
2. if the bond portfolio was classified as available-for-sale, what impact would that have on financial statement disclosure
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning