User Account

All Pages

Prepare 4M entry for the purchase of the investment

Assignment Help Accounting Basics
Reference no: EM132623961

Question - On October 1, 4M Ltd. purchased a 7% bond with a face value of $1,000 for trading purposes, accounting for the investment at fair value through net income. The bond was priced at 1.023 to yield 4M 5%, and pays interest annually each October 1. 4M has a December 31 year end, and at this date, the bond's fair value was $1,050. Assume 4M applies IFRS and follows a policy of not reporting interest income separately from investment income.

Required -

1. Prepare 4M's entry for the purchase of the investment.

2. Prepare 4M's entry for the December 31 interest accrual.

3. Prepare 4M's entry for the year-end fair value adjustment.

4. Assume 4M applied ASPE, uses the effective-interest method, and follows a policy of reporting interest income separately.

Reference no: EM132623961

Questions Cloud

How is corporate social responsibility an issue in case : Joe Fresh was originally launched as a female-only, affordable fashion line in select Loblaw retailers, but has since been launched in over 300 stores across
How many months before the due date was the date of discount : A 11-year $8000.00 promissory note, with interest at 8.4% compounded monthly, How many months before the due date was the date of discount
Effective conflict resolution techniques : Explain the key principles of negotiation that should be used in the workplace to ensure that agreements are reached and Discuss three effective conflict
Why are assets and liabilities of the subsidiary consolidate : For acquisition accounting, why are assets and liabilities of the subsidiary consolidated at fair value? Explain in detail with an example.
Prepare 4M entry for the purchase of the investment : On October 1, 4M Ltd. purchased a 7% bond with a face value of $1,000 for trading purposes, Prepare 4M entry for the purchase of the investment
Create a draft of the self-introduction outline to be used : As a way of introducing yourselves to the instructor and your peers, please create a DRAFT of the self-introduction outline to be used as the notes/preparation.
Which quality of earnings refers to : Which Quality of earnings refers to? Ability of reported earnings to reflect the company's true earnings./ An increasing trend in profitability.
How much revenue does the company need to generate : Required - After the purchase of the equipment, how much revenue does the company need to generate a profit of $125,000
Develop your vision of the ideal health care system : Develop your vision of the ideal health care system. List some of the characteristics that constitute such a system. What would be the goal or goals of your.

Reviews

Write a Review

Accounting Basics Questions & Answers

  If the ex-rights price were set at 790 would you as a

the obama corporation has 120000 shares outstanding with a current market price of 8.10 per share. the company needs to

  What is the minimum price at which Firm A can sell order

Firm A will not suffer any changes to its fixed costs by taking the order. What is the minimum price at which Firm A can sell the special order

  Compute his regular pay and overtime pay

Tony Newbern, an unmarried employee, works 48 hours in the week ended January 12. His pay rate is $12 per hour, and his wages are subject to no deductions.

  Find a peer article from library regarding customer service

Find a peer reviewed article from the library regarding customer service. Read and review the article and explain if the author had any errors in reasoning

  Write the introduction of the selected companies

Choose TWO public listed companies of Bursa Malaysia and Write the introduction of the selected companies? What is the summary of the assignment

  Financial difficulties faced by gold company

Gold Company was experiencing financial difficulties, but was not bankrupt or insolvent. The National Bank, which held a mortgage on other real estate owned by Gold, reduced the principal from $110,000 to $85,000.

  What types of activities are internal service funds used

what types of activities are internal service funds used to account?

  The company is considering using an activity-based costing

the company is considering using an activity-based costing system to compute unit product costs for external financial

  Run the appropriate regression

Run the appropriate regression to estimate the average variable cost function (AVC) for Sting Rays. Evaluate the statistical significance of the three estimated parameters using a significance level of 5 percent.  Be sure to comment on the algebraic ..

  How many units must sanfran produce and sell in order to

sanfran has the following data selling price 40 variable manuf cost 22 fixed manuf cost 150000 per month fixed

  Maturity value in two years-before tax interest

Freddy purchased a certificate of deposit for $20,000 on January 1,2010. The certificate's maturity value in two years (December 31,2011) is $22,050. yeilding 5% before-tax interest.

  Compute the capital gains yield and dividend yield

A stock has an initial price of $100 per share, paid a dividend of $2.00 per share during the year, and had an ending share price of $125.

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