Huang Hardware Inc. had the following transactions involving non-strategic investments during 2023: Required 1. Prepare an amortization
Question:
Huang Hardware Inc. had the following transactions involving non-strategic investments during 2023:
Required1. Prepare an amortization schedule for the Barker bond showing only 2023 and 2024.2. Prepare journal entries to record the preceding transactions.3. Show how Huang Hardware Inc.’s investments will appear on its December 31, 2023, balance sheet.
Analysis Component:Huang Hardware Inc. purchased the Barker Inc. bond for less than face value. Explain why.
2023 Feb. 21 Apr. 15 20 July 15 28 Dec. 31 31 2024 Feb. 1 Paid $70,000 to buy a 60-day term deposit, $70,000 principal amount, 6.23%, dated Feb. 1. Purchased 6,000 common shares of Hilton Ltd. at $11.25. 2 Received a cheque for the principal and accrued interest on the term deposit that matured today. Purchased 8,200 common shares of Elder Corp. at $9.75. Purchased 14,000 common shares of Venture Ltd. at $3.40. Purchased for $67,069 a 6.8%, $68,000 Barker Inc. bond that matures in four years when the market interest rate was 7.2%. Interest is paid semiannually beginning December 31, 2023. Huang Inc. plans to hold this investment until maturity. Received a $0.30 per share cash dividend on the Hilton common shares. Sold 4,000 of the Hilton common shares at $11.15. 1 1 Received a $0.30 per share cash dividend on the remaining Hilton common shares owned. Received the interest on the Barker bond. The fair values of Huang Hardware Inc.'s investments on this date were Hilton shares, $12.60; Elder shares, $10.30; Venture shares, $3.20. Assume the fair value and carrying value of the Barker bond were equal. 16 Sold the remaining Hilton shares at $12.65 less a transaction fee of $200.
Step by Step Answer:
Analysis component Huang HardwareInc purchased the Barker Inc bond for less than its face value beca...View the full answer
Fundamental Accounting Principles Volume 2
ISBN: 9781260881332
17th Canadian Edition
Authors: Kermit D. Larson, Heidi Dieckmann, John Harris
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Business questions
-
Obtain the latest Form 10K for the company of your choice Select a company that has not already been selected by one of your peers Describe the significant risks the company identifies Discuss...
-
Huang Hardware Inc. had the following transactions involving non-strategic investments during 2020: Required 1. Prepare an amortization schedule for the Barker bond showing only 2020 and 2021. 2....
-
Musli Inc. had the following transactions involving non-strategic investments during 2014: Required 1. Prepare an amortization schedule for the Barker bond showing only 2014 and 2015. 2. Prepare...
-
The 32-kg spool of outer radius r, = 420 mm has a centroidal radius of gyration k = 265 mm and a central shaft of radius r; = 155 mm. The spool is at rest on the incline when a tension T= 243 N is...
-
A shoe repair operation uses a two- step sequence that all jobs in a certain category follow. All jobs can be split in half at both stations. For the group of jobs listed, a. Find the sequence that...
-
According to the U.S. National Center for Health Statistics, 25.2 percent of males and 23.6 percent of females never eat breakfast. Suppose that random samples of 200 men and 200 women are chosen....
-
Calculate an acceptable risk of incorrect acceptance assuming: (1) audit risk is 5 percent, (2) the risk that the internal controls fail to detect material errors is 40 percent, and (3) the risk that...
-
Roy Rand executed and delivered the following note to Sue Sims: Chicago, Illinois, June 1, 2011; I promise to pay to Sue Sims or bearer, on or before July 1, 2011, the sum of $7,000. This note is...
-
After participating in the Application Based Activity (ABA) on the case involving allegations of fraud against the owner of a dating website, I judged the case in favor of the defendant. My decision...
-
Delta Corporation showed the following adjusted trial balance at its year-end, December 31, 2023: 1 Assume all balances are normal. 2 Delta owns 36% of the outstanding shares of Tildon Inc. and is a...
-
Describe verbally the inverse of the statement. Then express both the given statement and its inverse symbolically. Multiply x by -2 and add 3.
-
(a) Consider the group (Z2 Z2, ) where, for a, b, c, d Z2, (a, b) (c, d) = (a + c, b + d) - the sums a + c and b + d are computed using addition modulo 2. What is the value of (1, 0) (0, 1) (1,...
-
Using the material in the chapter, describe how an organization might be well conceived at the individual and small group level (in terms of motivation and so forth) and still not be effective.
-
Discuss the following statement: Non-verbal communication is more effective than verbal communication.
-
How can an organization create a positive climate for voice and what impact does it have on employees?
-
Discuss the relationship between size and structure.
-
Define flex time and telecommuting. How does each affect the quality of working life?
-
Mountain Aquaculture and Producers Association (MA&PA) is a small trout producers cooperative in West Virginia.13 Its main product is boned, head-removed trout sold to local stores. One of the...
-
What are technical skills At what level are they most important and why?
-
The Mistry Company has the following sales, inventory, and purchases during the fiscal year ended December 31, 2023. Mistry Company uses a perpetual inventory system. Required 1. Calculate the dollar...
-
Gale Company has the following inventory and purchases during the fiscal year ended December 31, 2023. Gale Company employs a perpetual inventory system. Required 1. Calculate the dollar value of...
-
The Stilton Company has the following inventory and credit purchases during the fiscal year ended December 31, 2023. Stilton Company has two credit sales during the period. The units have a selling...
-
Weldon Corporation has provided the following data from its activity-based costing accounting system: Indirect factory wages Factory equipment depreciation.. $340,000 $240,000 Distribution of...
-
Hardy, Inc has a centralized HR department with $280,000 in expenses this year. HR has provided a total of 4,000 hours of service for the period. The Retail division used 2,750 hours of HR time while...
-
Orlando produces and sells a fitbit for $200 per unit. In 2022, 41,000 fitbits were produced and 37,000 were sold. Other information for the year includes: Direct materials $40.00 per unit Direct...
Study smarter with the SolutionInn App