Below is information for Suwadu Company that you'll use for the next questions; Date Activity Purchased...
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Below is information for Suwadu Company that you'll use for the next questions; Date Activity Purchased $200,000 of Catco Company's 9% bonds at face value (doesn't plan to hold bonds for short-term gain, but also not until maturity) A Purchased $300,000 of Sloth Co.'s 6% bonds at face value (plans to hold bonds for short-term gain) 6/1/YR 1 9/1/YR 1 Fair value of bonds as 9/30 YR 1; updated for third quarter Q3: 9/30/YR 1 $202,000 Catco Company bonds $290,000 Sloth Co. bonds Fair value of bonds as 12/31 YR 1; updated for fourth quarter Q4: 12/31/ YR 1 $205,000 Catco Company bonds $302,000 Sloth Co. bonds 1/5/YR 2 Sale of Catco bonds for $204,000 1. Assume Suwadu company has correctly recorded the journal entry for 9/30 for fair value. Record the journal entries below for 12/31/Yr 1 for any fair value adjustments needed. • Catco: • Sloth Co: 2. What is the total impact on Suwadu's income statement for the entries made on 12/31 in question 1? What is the total impact on Suwadu's total equity for the entries made on 12/31 in question 1? 3. Record the sale of Catco bonds on 1/5. 4. What is the total impact on Suwadu's income statement for the entries made on 1/5 in question 3? Below is information for Suwadu Company that you'll use for the next questions; Date Activity Purchased $200,000 of Catco Company's 9% bonds at face value (doesn't plan to hold bonds for short-term gain, but also not until maturity) A Purchased $300,000 of Sloth Co.'s 6% bonds at face value (plans to hold bonds for short-term gain) 6/1/YR 1 9/1/YR 1 Fair value of bonds as 9/30 YR 1; updated for third quarter Q3: 9/30/YR 1 $202,000 Catco Company bonds $290,000 Sloth Co. bonds Fair value of bonds as 12/31 YR 1; updated for fourth quarter Q4: 12/31/ YR 1 $205,000 Catco Company bonds $302,000 Sloth Co. bonds 1/5/YR 2 Sale of Catco bonds for $204,000 1. Assume Suwadu company has correctly recorded the journal entry for 9/30 for fair value. Record the journal entries below for 12/31/Yr 1 for any fair value adjustments needed. • Catco: • Sloth Co: 2. What is the total impact on Suwadu's income statement for the entries made on 12/31 in question 1? What is the total impact on Suwadu's total equity for the entries made on 12/31 in question 1? 3. Record the sale of Catco bonds on 1/5. 4. What is the total impact on Suwadu's income statement for the entries made on 1/5 in question 3?
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Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
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