Question: Problem 14-23 (Algo) Report bonds at fair value; quarterly reporting [LO14-6] Appling Enterprises issued 10% bonds with a face amount of $480,000 on January 1,

Problem 14-23 (Algo) Report bonds at fair value; quarterly reporting [LO14-6] Appling Enterprises issued 10% bonds with a face amount of $480,000 on

Problem 14-23 (Algo) Report bonds at fair value; quarterly reporting [LO14-6] Appling Enterprises issued 10% bonds with a face amount of $480,000 on January 1, 2021. The bonds sold for $441,489 and mature in 2040 (20 years). For bonds of similar risk and maturity the market yield was 11%. Interest is paid semiannually on June 30 and December 31. Appling determines interest expense at the effective rate. Appling elected the option to report these bonds at their fair value. The fair values of the bonds at the end of each quarter during 2021 as determined by their market values in the over-the-counter market were the following: March 31 June 30 September 30 December 31 $470,000 450,000 442,000 449,000 General (risk-free) interest rates did not change during 2021. Required: 1. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the March 31 quarterly financial statements? 2. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the June 30 quarterly financial statements? 3. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the September 30 quarterly financial statements? 4. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the December 31 annual financial statements? (For all requirements, do not round your intermediate calculations.) X Answer is not complete. 1. decreased 2. decreased Appling's comprehensive income will be Appling's comprehensive income will be Appling's comprehensive income will be Appling's comprehensive income will be by by by by 3. increased 4. decreased

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!

COMPREHENSIVE PROBLEM 4 Home Depot, Inc. ANALYSIS OF THE FINANCIAL STATEMENTS OF A PUBLICLY OWNED CORPORATION This Comprehensive Problem is to acquaint you with the content of the fiscal year 2021...

Early extinguishment; effective interest LO5 The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2010, included 12% bonds having a face amount of $20...

Problem 14-22 (Algo) Report bonds at fair value; quarterly reporting; financial statement effects [LO14-6] Appling Enterprises issued 9% bonds with a face amount of $550,000 on January 1, 2024. The...

please answer these correctly. 14. 29. Req 1A Req 1B to 4 40. 14 Problem 14-23 Report bonds at fair value; quarterly reporting [L014-6) Appin g Enterprises issued 11% bonds with a face amount of...

Appling Enterprises issued 10% bonds with a face amount of $530,000 on January 1, 2021. The bonds sold for $487,478 and mature in 2040 (20 years). For bonds of similar risk and maturity the market...

Chi Appling Enterprises issued 10% bonds with a face amount of $450,000 on January 1, 2021. The bonds sold for $382.292 and mature in 2040 (20 years). For bonds of similar risk and maturity the...

Appling Enterprises issued 10% bonds with a face amount of $540,000 on January 1, 2021. The bonds sold for $496,675 and mature in 2040 (20 years). For bonds of similar risk and maturity the market...

Appling Enterprises issued 10% bonds with a face amount of $480,000 on January 1, 2021. The bonds sold for $441,489 and mature in 2040 (20 years). For bonds of similar risk and maturity the market...

Appling Enterprises issued 10% bonds with a face amount of $530,000 on January 1, 2016. The bonds sold for $487,478 and mature in 2035 (20 years). For bonds of similar risk and maturity the market...

Appling Enterprises issued 10% bonds with a face amount of $450,000 on January 1, 2018. The bonds sold for $382,292 and mature in 2037 (20 years). For bonds of similar risk and maturity the market...

A diploid organism is heterozygous for 4 loci, how many types of gametes can be produced?

1. Aaron Feuerstein became something of an overnight national hero by protecting his workers. Feuerstein said, It was the right thing to do and theres a moral imperative to do it, irrespective of the...

A community events calendar app lists upcoming local events. The main screen of the app displays brief descriptions of events using a RecyclerView

when examining strategic competitiveness outcomes, are there any disadvantages of international diversification leading to market expansion?

B Who is responsible for developing a shared code when coaches and players speak different languages? How might the rules of communication be worked out between individuals who speak different...

Define goals in terms of problems to be solved (for example, Our goal is to raise $4,000 to beautify Dixon Park), not values to be embodied (Our goal is to be good citizens of this community)....

What group are you spending most of your time in these days? What type of communication network exists in the group? Is that network helping the group achieve its goals? If not, what changes might...