Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Journal entry to record investment & interest & sale, reporting investment.
Tanner-UNF Corporation acquires as long-term investment $240 million of 6% bonds, dated July 1, and July 1, 2009. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $200 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2009, was $210 million.
Required: 1.Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2009. 2.Prepare the journal entry by Tanner-UNF to record interest on December 31, 2009, at the effective (market) rate. 3.At what amount will Tanner-UNF report its investment in the December 31, 2009, balance sheet? Why? 4.Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2010, for $190 million. Prepare the journal entry to record the sale.
The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,120. Illustrate what is the bond’s nominal yield to call?
Net income is $132,000, accounts payable increased $10,000 during the year, inventory decreased $6,000 during the year, and accounts receivable increased $12,000 during the year. Under the indirect method, what is net cash provided by operations?
material yr has fluctuated in price over period 10th april 2013 and the main accountant is unsure what price to cost
qreporting and computing the acquisition and amortization of three different intangible assetskreiser company had three
Assume that the accountant preparing the consolidation worksheet has chosen to make the optional accumulated depreciation consolidation entry. Why does this consolidation entry need to be made each year
Compute depreciation for 20X3 - 20X7 by using the following methods: straight line, units of output, and double-declining-balance.
On July 1 of the current year, the assets and liabilities of Wong Industries, are as follows: Cash, $15,000; Accounts Receivable, $12,300; Supplies, $3,100; Land, $35,000; Accounts Payable, $8,700. What is the amount of stockholders’ equity as of..
Elucidate how should the $200 nonrefundable fee for the Power Startrpack be allocated between the activation card and the prepaid voucher?
questionwaterways has two main public-park projects to provide with comprehensive irrigation in one of its service
Discuss the differences in how property, plant, and equipment is audited compared to current assets.
Goofy reclassified this investment as trading securities in December of 2006 when the market value had risen to $162,000. Illustrate what effect on 2006 income should be reported by Goofy for the Crazy Co. shares?
Prepare the journal entries needed to record the investments of Levy and Parcells.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd