User Account

All Pages

Journalize fair value adjustment

Assignment Help Accounting Basics
Reference no: EM133080393

Question - On January 1, 2019, Dologan Company purchased the bonds: Purchase price: $393,748.6Effective interest yield: 10%

Par value: $366,000

Stated interest rate: 12%

Bond issue date: January 1, 2019

Mature date: January 1, 2024

Interest receipt date: every December 31

Dologan uses the effective interest method for amortization of bond premium or discount and carries the bonds at FV-OCI. The fair value of the bonds at each year-end is as follows:

December 31, 2019 $391,000

December 31, 2020 $377,000

The investment was sold for $377,000 on December 31, 2020.

Required -

1. Journalize interest receipt and fair value adjustment for 2019.

2. Journalize fair value adjustment for 2020, sale of the investment on December 31, 2020, and reclassification of any unrealized gains or losses to net income.

Reference no: EM133080393

Questions Cloud

Why do social revolutions fail : According to Skocpol, why do social revolutions fail? What are the factors that impede its progress and result in a political revolution instead?
How much gain does Mark recognize on the exchange : Mark exchanged real estate on March 15, 2021 with the following information: Cash boot received: $1,000. How much gain does Mark recognize on the exchange
Discuss three types of background checks : 1) Discuss three types of background checks that should be performed?
Perfectly competitive market : A company operating in a perfectly competitive market faces a market price of $10. This market price will prevail in the foreseeable future. Its marginal cost e
Journalize fair value adjustment : Journalize fair value adjustment for 2020, sale of the investment on December 31, 2020, and reclassification of any unrealized gains or losses to net income
Compute the percentage of complaints for complaints : The file Financial-Complaints2 summarizes complaints received from Louisaiana consumers by most-complained-about companies for 2016.
Calculate the sample standard deviation : Suppose some variable X has a population mean of 20, a population standard deviation of 5, and a population size of 37. If a sample of 36 is drawn from this pop
What is the profit maximize price : A monopolist faces an inverse demand function given by P = 120 - Q, and has costs of C = Q2. What is the profit maximize price under this situation?
What is his FITW using the percentage method of withholding : George is paid $500 per week in 2020 and claims married with 2 allowances on his 2019 Form W-4. What is his FITW using the percentage method of withholding

Reviews

Write a Review

Accounting Basics Questions & Answers

  How dell might set up a job-costing system

Job Costing at Dell Computer Dell 's manufacturing process at its Austin, Texas, facility consists of assembly, functional testing.

  Describe the return on net operating assets

Describe the differences between Return on Net Operating Assets (RNOA) and Return on Common Equity (ROCE). Include your opinion on which metric more beneficial

  What is the unamortized amount of the discount or premium

Interest paid during period 5,000,000. What is the unamortized amount of the discount or premium account at the beginning of the period

  Determine the total cash dividends and dividends per share

Determine the total cash dividends and dividends per share paid to the preferred and common stockholders during each of the three years

  Outstanding common stock of sam corporation

Father, inc. buys 80 percent of the outstanding common stock of sam corporation on January 1, 2009 for $680000 cash. at the acquisition date, sam's total fair value was assessed at $850,000 although sam's book vale was only $600,000.

  Calculate depreciation expense and book value of the metal

your firm uses return on assets roa to evaluate investment centers and is considering changing the valuation basis of

  Prepare the adjusting entries in general journal form

Question - Adjusting entries and effect on financial statement. How to Prepare the adjusting entries in general journal form

  Compute the depreciation expense under units-of-activity

Compute the depreciation expense under units-of-activity for 2019, assuming machine usage was 1,700 hours

  What is the company cost of preferred stock

The stock would pay a constant annual dividend of $6.00 a share. What is the company's cost of preferred stock

  Describe the history and status of the issue

Describe the history and status of the issue and provide an overview of the problem(s) that need to be addressed. This should be one or two (1-2) paragraphs

  Schedule of consolidated net income

Prepare a proper schedule of consolidated net income and apportionment to non controlling and congtrolling interests for 2010.

  Funded with a million dollars at his death

Bob had a will drafted which formed a trust for his wife that would be funded with a million dollars at his death. The trust is required to give her all income annually and allows her to designate who among their children will receive the trust pr..

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