User Account

All Pages

Find the effect of the given transactions on the net income

Assignment Help Financial Accounting
Reference no: EM132906430

DeMarco Company had the selected transaction in FVTPL bond investments in 2008:

  • August 1... Bought 50,000 of Seibel Co.'s $10,000, 12% bonds at 104 plus accrued interest of $1,500,000. Interest is paid semiannually on May 1 and November 1.
  • August 31...Bought 20,000 of Cyrus Corporation's $10,000 12% bonds at 98 plus accrued interest. Semiannual interest payment on June 30 and December 31.
  • December 1...With brokerage fee of $1,600,000, was able to sell 20,000 of the Seibel Co. bonds at 102 fair value plus accrued interest.
  • December 31...Cyrus Corporation and Seibel Co. bonds are quoted at 99 and 98.

Problem 1. Determine the effect of the given transactions on the net income or loss for 2008. Is it income or loss?

Problem 2. As of Dec. 31, 2008, $__________ is the carrying value of the Investment in Bonds - Fair Value Through Profit or Loss.

Reference no: EM132906430

Questions Cloud

Fertility drugs and ovarian cancer : Stanford University medical researchers conducted a study on the correlation between the use of fertility drugs and ovarian cancer.
How much is the account worth today : Jennifer, If Jennifer started saving at age 24 and has earned an average annual return of 4%, how much is the account worth today?
What is trend of import demand across all meat types : From 2015 to 2019, what is the trend of import demand across all meat types? Is the US a leader in livestock/meat trade compared to the rest of the world?
Find the value of a one year call option with strike price : At the end of the year it will be worth either 45 or 37. The risk free rate is 2%. Find the value of a one year call option with strike price of 38.
Find the effect of the given transactions on the net income : Cyrus Corporation and Seibel Co. bonds are quoted, Determine the effect of the given transactions on the net income or loss for 2008. Is it income or loss?
Calculate the return on equity using the dupont system : Calculate the Return on Equity (ROE) using the DuPont system. Calculate the Constant Growth Stock Valuation (CGSV) and compare it to the current stock price.
How do corporate managers apply efficient market hypothesis : How do corporate managers apply efficient market hypothesis and its features. Is efficient market hypothesis relevant to corporate managers.
Which statements apply to discontinued operations : Which statements apply to discontinued operations? The operations and cash flows have been (or will be) eliminated from the ongoing operations of the company
What issues over the last two years have impacted amazon : What issues over the last two years (2018-2019) have impacted Amazon in the firm's financial position in the annual report of total revenue sales

Reviews

Write a Review

Financial Accounting Questions & Answers

  How should davis record the sale of merchandise costing

Davis Hardware Company uses a perpetual inventory system. How should Davis record the sale of merchandise costing $700 for $1000 on account?

  Why would anyone be willing to buy such a stock

If the company's earnings and dividends are expected to decline by a constant percent per year, that is g = -4%, why would anyone be willing to buy such a stock

  Sean need to produce to break even

How many packages of cookies does Sean need to produce to break even

  Part aantonuis ltd directors have decided to issue a

part aantonuis ltd directors have decided to issue a prospectus on 25th april 2011 for 10 million shares at 8.00it

  Find and prepare an income statement for the year

Find and Prepare an income statement for the year. The adjusted trial balance of Ivanhoe Company at December 31, 2017, includes accounts

  Discuss estimates in terms of faithful representation

Describe and discuss estimates in terms of faithful representation and variability. The response must be typed and single spaced.

  What is the percentage change in the price of the bond

The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield rises to 9% from the current rate of 8.5%?

  Prepare a combined income statement for cosmetics

The Discount Drug Company has three major product lines: drugs, cosmetics, and housewares.

  Prepare the journal entry recorded by greenlight

Assume the company also declared and paid a dividend in December to all shares issued and outstanding. How many shares received a dividend?

  Discuss the specific risks and nature of the target company

Consider and discuss the specific risks and nature of the Target Company.- Create comprehensive audit programs foraccount receivables.

  What should be the minimum npv of investing in the lollipops

What should be the minimum NPV of investing in the lollipops store so that it is worthwhile for your brother to quit his job ? How does this NPV

  New york to germany

Mio was transfer from New York to Germany. He lived and worked in Germany for 340 days in 2015. Mio's salary for 2015 is $190,000. In your computation, round any division to four decimal places before converting to a percentage.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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