S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on January 3, 2019, for $880,000. At December 31, the bonds had a fair value of $873,000. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2018 and (b) the sale of the bonds in 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 > Record the unrealized gains or losses occurring at year end. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Unrealized holding loss-NI 2,000 Fair value adjustment 2,000 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 Record the unrealized gains or losses adjustment required on sale. Note: Enter debits before credits. Date General Journal Debit Credit January 03, 2019 Record entry Clear entry View general journal Journal entry worksheet 1 3 Record the sale of the Coca-Cola bonds in 2019. Note: Enter debits before credits. Date General Journal Debit Credit January 03, 2019 Cash 880,000 Discount on bond investment Investment in Coca-Cola bonds 875,000 Fair value adjustment Record entry Clear entry View general journal S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on January 3, 2019, for $880,000. At December 31, the bonds had a fair value of $873,000. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2018 and (b) the sale of the bonds in 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 > Record the unrealized gains or losses occurring at year end. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Unrealized holding loss-NI 2,000 Fair value adjustment 2,000 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 Record the unrealized gains or losses adjustment required on sale. Note: Enter debits before credits. Date General Journal Debit Credit January 03, 2019 Record entry Clear entry View general journal Journal entry worksheet 1 3 Record the sale of the Coca-Cola bonds in 2019. Note: Enter debits before credits. Date General Journal Debit Credit January 03, 2019 Cash 880,000 Discount on bond investment Investment in Coca-Cola bonds 875,000 Fair value adjustment Record entry Clear entry View general journal
Expert Answer:
Answer rating: 100% (QA)
1Unrealized gains or losses occurring at the year end Date General Jour... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
Posted Date:
Students also viewed these general management questions
-
S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2016. S&L purchased Coca-Cola common shares for $875,000 and sold the...
-
S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on...
-
S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on...
-
Majan International School, Muscat conducts online classes and online exams for its students due to Covid 19 pandemic situation. It uses its own online Learning Teaching Management system namely...
-
Display the number of pounds of milk produced in each month during the 2006-2010 period along with the ranking of each month in terms of the number of pounds of milk produced. The ranks should be...
-
Find a pair of numbers whose sum and product are both equal to 8.
-
Suppose that you make an investment that will cost $\$ 1,000$ and will pay you interest of $\$ 100$ per year for the next 20 years. Then at the end of the 20 years, the investment will pay $\$...
-
Examine the following pairs of puts, which differ only by exercise price. Determine whether either of them violates the rules regarding relationships between American options that differ only by...
-
Car A costs $10.37 per 100 miles to drive, while car B costs $6.66 per 100 miles to drive. How much more would car A cost to drive 550 miles? Car A costs $ more to drive 550 miles. (Type an integer...
-
Northern Products reported the following amounts in its 2022 financial statements. The 2021 amounts are given for comparison. Requirements 1. Compute Northerns quick (acid-test) ratio at the end of...
-
Does American Airlines (AA) lease any assets for use in operations? Does the company engage in sale-leaseback transactions? Summarize what you believe are AA's most important disclosures related to...
-
(3) [25 Points] Consider the linked list provided below: 2>3 Here the 1>7>5> 18 > NULL symbol means a pointer. Write a complete Python program which deletes the third last node of the list and...
-
3. (40 points) Write Verilog code to describe the multiplexer circuit below as a module using if-else statement. Please note that Verilog requires that procedural statements be contained inside an...
-
Give a clear English description of the language accepted by the following DFA: 2 3 a,b Q. 2 Maximum score 10 Construct a DFA ( a diagram) that accepts ail strings in the alphabet {a,b} of length up...
-
5. Compute the weakest precondition for each of the following assignment statements and postconditions: a. a a+2 b 1 {a> 1} b. x 2y+x-1 {x > 11} c. a = 2* b + 1; b a 3 {b <0} d. if (x > y) else...
-
The complexity of both methods (Method 1 and Method2) are O(n) public void Method1() 1 for(int i=1;i < n; i++) for(int z=1; 2 < n; z++) } System.out.println(z): System.out.println("Hello"); public...
-
Suppose you need to find a quadratic function that has x-intercepts at x = 0 and x = 4 and a maximum value of 8. (a) A function in standard form that has parameters a = ---Select--- and k = (b) To...
-
d. The characteristic equation of a control system is given by s+2s+8s+12s+20s+16+16=0. Determine the number of the roots of the equation which lie on the imaginary axis of s-plane
-
Refer to the situation described in BE 10-14. Assuming the company uses the weighted-average method, calculate the amount of interest capitalized for the year.
-
Agee Storage issued 35 million shares of its $1 par common stock at $16 per share several years ago. Last year, for the first time, Agee reacquired 1 million shares at $14 per share. Assuming that...
-
Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for the fiscal years ending December 31, 2016, 2017, and 2018. At December 31, 2015, paid-in capital...
-
Net profit is calculated in the (A) Trading account (B) Profit and loss account (C) Trial balance (D) Statement of financial position
-
To find the value of closing inventory at the end of a period we (A) Do this by physically counting the inventory (i.e. stocktaking) (B) Look in the inventory account (C) Deduct opening inventory...
-
Gross profit is (A) Excess of sales over cost of goods sold (B) Sales less purchases (C) Cost of goods sold + opening inventory (D) Net profit less expenses of the period
Study smarter with the SolutionInn App