Question: i need help thx Problem 12-11A (Part Level Submission) The following bond transactions occurred during 2018 for the University of Higher Learning (UHL) and Munchies

 i need help thx Problem 12-11A (Part Level Submission) The followingbond transactions occurred during 2018 for the University of Higher Learning (UHL)

i need help thx

Problem 12-11A (Part Level Submission) The following bond transactions occurred during 2018 for the University of Higher Learning (UHL) and Munchies Ltd.: Feb. 1 UHL issued $9,600,000 of five-year, 4% bonds at 97 (this means 97% of maturity value) at a price to yield a market interest rate of 4.7%. The bonds pay interest semi-annually on August 1 and February 1. 1 Munchies Ltd. purchased $2,700,000 of UHL's bonds at 97 as a long term investment that was to be held to maturity. Aug. 1 The semi-annual interest on the bonds was paid. (a) Your answer is partially correct. Try again. Prepare all required journal entries for Munchies Ltd., the investor, to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to o decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Feb. 1 Tcash Cash 2,519,000 Aug. 1Cash Realized Loss on Investment in Associates 7.546.50 Interest Revenue 1 6 1,546,50 (b) How would the joumal entries for Munchies Ltd. change if the investment had been purchased for trading purposes? (Credit account titles are automatically Indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to O decimal places, e.o. 5,275.) Date Account Titles and Explanation Credit Debat

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!