Reference no: EM13908866
Aslan County purchased $3,000,000 of bonds as a General Fund investment on March 1, 20X7, for $3,060,000 plus four months accrued interest of $80,000. The bonds mature in four years and two months.
1. The county received the semiannual interest payment on the bonds ($120,000) on April 30, 20X7.
2. The county received the October 31 semiannual interest payment ($120,000).
3. On December 31, the end of Aslan's fiscal year, the fair value of its bond investment was $3,065,000 (excluding accrued interest).
Required
(a) Record these transactions in the General Ledger accounts of the Aslan County General Fund.
(b) Compute the investment income that should be reported for this investment.
DR CR
Accounts Investments 3,060,000
Accrued Interest Receivable 80,000
Cash 3,140,000
(Records original purchase of investment)
Cash 120,000
Accrued Interest Receivable 120,000
(Record receipt of interest on 30 April 20X7)
Cash 120,000
Accrued Interest Receivable 120,000
(Record accrued interest on 31 October)
Investments Revenues 5,000
Increase in Fair Value of Investments 5,000
(Record change in investments' fair value on 31 December)
The accrued interest would be recognized as revenue, the cash not be collected for more than 60 days after 31 December. The interest income of 40,000+40,000+120,000=200,000; then add the net increase in the fair value of the investment of 5,000 total equals 205,000.
|
Create a database for the application
: Perform the following tasks to create the database required for the application: Create a database for the application.
|
|
Bonds payable is amortized using effective-interest method
: Sasha Corporation issued $400,000 face value, ten-year, 10% bonds on January 1, 2017, for $453,680. The bonds pay interest annually on January 1 and the effective interest rate is 8%. Assuming that the premium on bonds payable is amortized using the ..
|
|
Find steady-state probability p of state i in embedded chain
: Suppose a colleague has calculated the steady-state probabilities {pi} of being in state i for each i ≥ 0. For each i ≥ 0, find the steady-state probability π of state i in the embedded Markov chain.
|
|
Not-for-profit health care organizations
: Not-for-profit health care organizations: What are revenues, gain, and other support? What are expenses and losses?
|
|
Compute the investment income that should be reported
: Record these transactions in the General Ledger accounts of the Aslan County General Fund. Compute the investment income that should be reported for this investment.
|
|
Security-beta and expected return
: You observe the following: Security A and B, With Beta 2.0=A and 1.5=B, Expected Return A=28% B=25% what would the risk-free rate have to be if the two stocks are correctly priced? Please show me with formula or step by step.
|
|
Compute the direct materials price and quantity variances
: Compute the direct materials price and quantity variances. Compute the direct labor rate and efficiency variances. Compute the variable manufacturing overhead rate and efficiency variances.
|
|
Portfolio has the same expected return as market portfolio
: You own a portfolio with 50% invested in a risk-free asset, 30% in stock A with a beta of 1.5 and 20% in stock B. Your portfolio has the same expected return as the market portfolio. What is the beta of stock B? (The risk-free rate is 5%). Please sho..
|
|
What are the main sections of the statement of operations
: What is the analogous for-profit statement called? What are the main sections of the statement of operations?
|