Available-for-sale debt securities

Assignment Help Accounting Basics
Reference no: EM13126946

Marten Co. purchased $500,000 of 8%, 5-year bonds from Duggan, Inc. on January 1, 2008, with interest payable on July 1 and January 1. The bonds sold for $520,790 at an effective interest rate of 7%. Using the effective-interest method, Marten Co. decreased the Available-for-Sale Debt Securities account for the Duggan, Inc. bonds on July 1, 2008 and December 31, 2008 by the amortized premiums of $1,770 and $1,830, respectively. At April 1, 2009, Marten Co. sold the Duggan bonds for $515,000. After accruing for interest, the carrying value of the Duggan bonds on April 1, 2009 was $516,875. Assuming Marten Co. has a portfolio of Available-for-Sale Debt Securities, what should Marten Co. report as a gain or loss on the bonds?

Reference no: EM13126946

Questions Cloud

Find the equilibrium price for market : If the price in this market were $160, explain why this would not be the market equilibrium price and find the equilibrium price and equilibrium quantity exchanged for this market.
What is the molarity of the ethanol in this solution : A solution of ethanol (C2H5OH) in water is prepared by dissolving 63.5 mL of ethanol (density = 0.79 g/cm3) in enough water to make 250.0 mL of solution.
Define important information about calculation : Important information about Calculation, A person ate 0.50 pound of cheese (an energy intake of 4000kJ). Suppose that none of the energy was stored in the body
At illustrate what price was the bond issued : The bond has a stated interest rate of 6 percent. On January 1, 2011, when the bond was issued, the market rate was 8 percent. The bond pays interest twice per year, on June 30 and December 31. At illustrate what price was the bond issued?
Available-for-sale debt securities : Assuming Marten Co. has a portfolio of Available-for-Sale Debt Securities, what should Marten Co. report as a gain or loss on the bonds?
Calculate the average density of earth : The mass of Earth is 5.974 􏰀 1024 kg. Assume that Earth is a sphere of diameter 1.28 􏰀 104 km and calculate the average density of Earth in g/cm3.
Explain reactions within equations and properties of acidity : Reactions within equations and properties of acidity, A reaction occurs for each of the following below. How do you differentiate between the different driving forces? (a driving force can either be the transfer of electrons; the formation of a pr..
Explain how they contributed toward the financial reporting : Describe the failures in internal controls of Royal Dutch Shell plc and explain how they contributed toward the financial reporting problems at Shell.
What is the final temperature of the water : If 329 g water at 65.7°C loses 9730 J of heat, what is the final temperature of the water?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Straight-line amortization

Morales Company issued $800,000 of 8%, 5-year bonds at 106, which pays interest annually. Assuming straight-line amortization, what is the carrying value of the bonds after one year?

  Selling and administrative expense budgets

The selling and administrative expense budget of Fenley Corporation is based on the number of units sold, which are budgeted to be 2,500 units in January. Prepare the selling and administrative expense budget for January.

  Develop a gantt chart- costs of a level production strategy

Develop a Gantt chart to determine the total time required to process all six jobs. Determine the costs of a level production strategy for the next six months, with an ending inventory of 8,000 pounds.

  Determining pension worksheet-journal entries

Using the above information for ABC co., prepare a pension work sheet for 2008. Indicate (credit) entries by parentheses. Calculated amounts should be supported. Prepare the journal entries to reflect the accounting for the company's pension plan f..

  Prepare a consolidation worksheet

Required: Assuming that these two companies retained their separate legal identities, prepare a consolidation worksheet as of December 31, 2009.

  Evaluating the risk of a model stock portfolio

Mary is evaluating the risk (return deviation) of a model stock portfolio she has constructed. She knows that an ex ante set of returns is a more useful approach. However, she decides to examine ex post returns because she knows that for a well-di..

  Intermediate products-peels and depeeled spuds

Veron Corporation purchases potatoes from farmers. The potatoes are then peeled, producing two intermediate products-peels and depeeled spuds.

  Preventative controls

Discuss the nature of preventive controls that may be designed into an AIS. Give an example and explain how it may prevent fraud or abuse of the system.

  How much is the contribution margin ratio

Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio?

  What percentage interest in the pool

What percentage interest in the pool is held by the town and the school district? Show the entry in the Investment Trust Fund to record the School District's investment in the pool.

  Compare annual reports

With respect to the three reports in comparison: Income Statement, Cash Flow Statement, and Balance Sheet how can I "zero" in, or in laymen's terms, do an efficient comparison.

  How much are newco inc.s earning and profits

NEWCO Inc. had current earnings and profits of $50,000 when it made a nonliquidating distribution to an individual shareholder of land that NEWCO Inc. held for use in its business.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd