Prepare the adjusting entry to record the bonds

Assignment Help Accounting Basics
Reference no: EM131913560

Question - Below is a bond investment amortization schedule with related fair value information. The bonds are classified as trading.

           Amortized cost   Fair Value

7/31/17     $491,150    $497,000

7/31/18     $519,442    $500,000

7/31/19     $550,000    $550,000

a) Indicate whether the bonds were purchased at discount or a premium

b) Prepare the adjusting entry to record the bonds at fair value at 7/31/17. The Fair Value adjustment account has a credit balance of $1,000 prior to adjustment

c) Prepare the adjusting entry to record the bonds at fair value at 7/31/18.

Reference no: EM131913560

Questions Cloud

Why horizontal and vertical fit are important : Achieving both horizontal and vertical fit are important with regard to high-performance work systems, which do you consider more critical and why?
Discuss routing issues and solutions namely : Discuss routing issues and solutions namely, count-to-infinity, split horizon, split horizon with poison reverse, and hold-down timers.
Different borrowers have different risks of bankruptcy : Different borrowers have different risks of bankruptcy, and bankruptcy is costly to lenders.
What are the effects of employees reduction to training : What are the effects of employees reduction to training and quality departments of any organization.
Prepare the adjusting entry to record the bonds : Prepare the adjusting entry to record the bonds at fair value at 7/31/17. The Fair Value adjustment account has a credit balance of $1,000 prior to adjustment
Write an essay on conrad''s representation of african people : Write an essay on Conrad's representation of African people in Heart of Darkness. Write an essay on some of many implications of the title of Conrad's novella.
Write a paper on emotional intelligence survey : The core of Emotional Intelligence is self-awareness. Self-awareness is comprised of three competencies; emotional self-awareness.
List some best practices for hardening iis : 1. List some best practices for hardening IIS. List some best practices for hardening Internet Explorer.
What amount will J Corp show as its basis in the building : Scott received 90% of the outstanding stock of J with a FMV of $65000 plus $2000 cash. What amount will J Corp show as its basis in the building it receives

Reviews

Write a Review

Accounting Basics Questions & Answers

  Gulf of evaluation and gulf of execution

Explain how the two metaphors - conversation and direct-manipulation can be used to bridge the gulf of evaluation and gulf of execution. Illustrate with examples for each.

  Discuss gain or loss on the early redemption of the bonds

Calculate the gain or loss on the early redemption of the bonds. Round your answer to the nearest whole dollar

  What would be the increase or decrease in profit

Should HJM modify the existing assembly? What would be the increase/decrease in profit if HJM modifies the assembly

  What is the npv for a project whose cost of capital is 15

What is the NPV for a project whose cost of capital is 15 percent and initial after-tax cost is $5,000,000 and is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3, and $1,300,000..

  What are the essential features of the allowance method

What are the essential features of the allowance method of accounting for bad debts?

  What is the learning-curve percentage

What is the time for a new employee to build 16 units with this learning curve using the cumulative average-time method? You may use an index of -0.1520.

  An outsider had offered to produce the cameras for 12 each

during 2010 america inc. produced among other products 9500 cameras incurring the following unit costs 5 in direct

  To save for her newborn sons college education lea wilson

to save for her newborn sons college education lea wilson will invest 1000 at the beginning of each year for the next

  Prepare income statements segmented by territory

Prepare income statements segmented by territory for September, including a column for the entire firm. Do not use negative signs with your answers

  Journalize the entries for may

On May 10, a company issued for cash 1,500 shares of $2 par common stock at $14, and on May 15, Journalize the entries for May 10 and 15

  What are the fixed cost

The breakeven is $2000.00 units. The selling price is $16 per unit, the variable cost is $6.00 per unit. What are the fixed cost

  Question 1jackson companyrsquos credit history indicates

question 1.jackson companyrsquos credit history indicates that 60 percent of revenue is collected in the quarter the

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!

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