Question: Assume the same information as in E17-3B except that the securities are classified as available-for-sale. The fair value of the bonds at December 31 of

Assume the same information as in E17-3B except that the securities are classified as available-for-sale. The fair value of the bonds at December 31 of each yearend is as follows.

2014 ........ $430,000

2015 ........425,000

2016 ........420,000

2017 ........450,000

2018 ........470,000

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 2014.

Step by Step Solution

★★★★★

3.54 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a January 1 2014 AvailableforSale Securities428938 Cash 428638 b June 30 2014 ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

253-B-A-I (3459).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

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.

Assume the same information as in P21-4. Instructions (Round all numbers to the nearest cent.) (a) Assuming the lessors accounting period ends on September 30, answer the following questions with...

(Entries for Available-for-Sale Securities) Assume the same information as in E17-3B except that the securities are classified as available-for-sale. The fair value of the bonds at December 31 of...

Help me solve those two problems please and show the worked for each please. Thanks in advace! E17.3B (L0 1) (Entries for Held-to-Maturity Securities) On January 1, 2020, Hummer Company purchased 5%...

NEED HELP ON 17-4B E17-4B (L01) (Entries for Available-for-Sale Securities) Assume the same information as in E17-3B except that the securities are classified as available-for-sale. The fair value of...

Please complete exercise #1 and 2 by using excel. Exercise #1. On January 1, 2020, Hummer Company purchased 5% bonds, having a maturity value of $4,500,000 for $3,860,442. The bonds provide the...

I'm looking for the answer to problem E17-4B Instructions Prepare the journal entry at the date of the bond purchase. Prepare the journal entries to record the interest received and recognition of...

E 1 7 . 4 ( L 0 1 ) ( Entries for Available - for - Sale Securities ) Assume the same information as in E 1 7 . 3 except that the securities are classified as available - for - sale. The fair value...

Entries for Available-for-Sale Securities) 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...

Suppose that node A is directly connected to node B by a link having a bandwidth of 10 Mbps (mega-bits-per-second). Suppose also that the link is 1 km (kilometer), the propagation delay is...

ATTRIBUTE AND DESCRIPTION OF PAYROLL AUTOMATION

Problem for outdoor adventures outdoor adventures has issued an outstanding a total of 2 0 0 0 shares of eight dollars preferred shares and 1 5 , 0 0 0 common shares. The company began operations and...

Who should own the content that you publish on social media?

Assume you want to purchase 100 shares at $40 per share at a time when the initial margin requirement is 70%. Because 70% of the transaction must be finance with equity, the 30% balance can be...

For the following two samples, what is the value of sp2, the pooled estimate of the common variance?Include 1 decimal place in your answer. Sample 1 Sample Size 35 Sample 2 Sample size 40 Sample 1...

8 . In the market, four assets are traded with payoffs S = 1 . 1 1 . 3 1 1 1 . 1 1 1 1 . 3 1 . 1 1 1 . 3 1 . The price of all assets is 1 . There is an investment opportunity that costs 2 . This...