Assume the same information as in E17-3 except that the securities are classified as available-for-sale. The fair
Question:
Assume the same information as in E17-3 except that the securities are classified as available-for-sale. The fair value of the bonds at December 31 of each year end is as follows.
Instructions
(a) Prepare the journal entry at the date of the bond purchase.
(b) Prepare the journal entries to record the interest received and recognition of fair value for 2011.
(c) Prepare the journal entry to record the recognition of fair value for 2012.
Step by Step Answer:
a On the date of the bond purchase the journal entry to record the purchase of the availableforsal...View the full answer
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
-
Assume the same information as in E1412. Minor Inc. sells 10% bonds having a maturity value of $3 million for $2,783,724. The bonds are dated January 1, 2011, and mature on January 1, 2016. Interest...
-
Assume the same information as in BE8-9. Young Inc.'s financial difficulties are over. On June 4, 2014, Perry Co. receives a payment in full of $5,500 from Young Inc. Record this transaction.
-
Assume the same information as in BE8-9. Tokarik Inc.'s financial difficulties are over. On June 4, 2017, Perry Co. receives a payment in full of $5,500 from Tokarik Inc. Record this transaction.
-
In a 1994 study, 164 pregnant, HIV-positive women were randomly assigned to receive the drug AZT during pregnancy and 160 such women were randomly assigned to a control group that received a placebo....
-
A computer lab at a small college has 25 computers. Twice during the day, a full scan for viruses is performed on each computer. Because of differences in the configuration of the computers, the...
-
The terms prior and posterior are relative. Assume that the test in Figure 9.17 (and in the file Bayes Rule for Disease.xlsx) has been performed, and the outcome is positive, which leads to the...
-
How is the critical speed of a shaft determined?
-
McDowell Industries sells on terms of 3/10, net 30. Total sales for the year are $912,500. Forty percent of the customers pay on the 10th day and take discounts; the other 60 percent pay, on average,...
-
As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 520,000 shares for $600,000 at the beginning of the fiscal year of both companies. On the purchase...
-
A supplier shipped $3,000 of ingredients on 12/29/17. Peyton receives an invoice for the goods, as well as a bill for freight for $175, all dated 12/29/17. Goods were shipped FOB suppliers warehouse....
-
On January 1, 2011, Roosevelt Company purchased 12% bonds, having a maturity value of $500,000, for $537,907.40. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2011,...
-
On January 1, 2012, Morgan Company acquires $300,000 of Nicklaus, Inc., 9% bonds at a price of $278,384. The interest is payable each December 31, and the bonds mature December 31, 2014. The...
-
The financial statements of Marks and Spencer plc (M&S) are available at the books companion website or can be accessed at corporate.marksandspencer....
-
Smith Company inventory records indicate the following transactions for October. Smith uses a perpetual Inventory system : October 1 Beginning inventory 2,400 units @$5.00 9 Purchase 5,600 units...
-
What is Dodge motors 10-k report look like over the past 2 years?
-
What is a compulsory license, and what is the economic rationale behind compulsory licensing? On what grounds has Lee Pharma applied for a compulsory license for Saxagliptin? Is Lee Pharma justified...
-
How could you coach or mentor aspiring leaders to better appreciate diversity and inclusion?
-
. 3. Use iteration to guess an explicit formula for the sequence: tk = tk-1 + 5k+7k+ 3, for all integers k 1, where t = 0 (using the formulas from
-
a. For a nucleus with I = 1/2 and gN > 0, sketch a graph of the nuclear-spin energy levels versus the applied field B. b. Repeat (a) for a nucleus with I = 1 and gN > 0.
-
Use a calculator to evaluate the expression. Round your result to the nearest thousandth. V (32 + #)
-
The following information relates to the December 31, 2010, balance sheet for Chiapucci Incorporated. 6% convertible 10-year debentures issued at par . . . . . . . . . . . . . . . . . . . . . . . . ....
-
Hillcrest Corporation's capital structure is as follows: The following additional information is available. (a) On September 1, 2012, Hillcrest sold 74,000 additional shares of common stock. (b) Net...
-
The Stockholders Equity section of Alta Companys balance sheet as of December 31, 2011, contains the following: $2 cumulative preferred stock, $25 par, convertible, 1,600,000 shares authorized,...
-
As manager of a hotel, you have noticed that persons suspected to be prostitutes are seen frequently in your hotel lobby and bar. What are your options, considering legal issues and business...
-
Bakrah El Hib, aged 61, was driving to work on 2nd August when he was struck by Yunis Khallah's car at the Wallchild roundabout at 8:30 am. As a result of the summer school holidays, the roundabout...
-
In Texas, on his annual renewal form, an RN stated that he got a second DWI 9 months ago. What do you tell him will be the most likely decision as to his license? If you are not in the state of...
Study smarter with the SolutionInn App