Prepare the adjusting entry to record these bonds

Assignment Help Accounting Basics
Reference no: EM131018027

Vilander Carecenters Inc. provides financing and capital to the health-care industry, with a particular focus on nursing homes for the elderly. The following selected transactions relate to bonds acquired as an investment by Vilander, whose fiscal year ends on December 31.

2014

   

Jan. 1

 

Purchased at face value $1,300,000 of Javier Nursing Centers, Inc., 10-year, 7% bonds dated January 1, 2014, directly from Javier.

July 1

 

Received the semiannual interest on the Javier bonds.

Dec. 31

 

Accrual of interest at year-end on the Javier bonds.

(Assume that all intervening transactions and adjustments have been properly recorded and that the number of bonds owned has not changed from December 31, 2014, to December 31, 2016.)

2017

   

Jan. 1

 

Received the semiannual interest on the Javier bonds.

Jan. 1

 

Sold $650,000 Javier bonds at 104.

July 1

 

Received the semiannual interest on the Javier bonds.

Dec. 31

 

Accrual of interest at year-end on the Javier bonds.

A. Journalize the listed transactions for the years 2014 and 2017.

B. Assume that the fair value of the bonds at December 31, 2014, was $1,430,000. These bonds are classified as available-for-sale securities. Prepare the adjusting entry to record these bonds at fair value.

C. Based on your analysis in part (b), show the balance sheet presentation of the bonds and interest receivable at December 31, 2014. Assume the investments are considered long-term.


Reference no: EM131018027

Questions Cloud

Common-mode input resistance : For this transistor, and those used in the differential pair, VA =20 V and β =50. What common-mode input resistance Would result? Assume RC «ro.
Basic differential circuit : Consider the basic differential circuit in which the transistors have β = 100 and VA =100 V, with I = 0.2 mA, REE =500 kΩ, and RC =25 kΩ. The collector resistances are matched to within 1%. Find:
Do you think ids like snort can easily detect covert channel : Do you think IDS like Snort can easily detect a covert channel? For example, can you write an effective set of Snort rules to prevent any information leak through a covert channel?
Imported asian candies made from gelatin : Imported Asian candies made from gelatin and fruit in the form of little cups that resemble coffee creamer containers have been identified as a choking hazard for small children and linked to dozens of choking deaths around the world.
Prepare the adjusting entry to record these bonds : Assume that the fair value of the bonds at December 31, 2014, was $1,430,000. These bonds are classified as available-for-sale securities. Prepare the adjusting entry to record these bonds at fair value.
Write code for the missing sections : Use the following code outline as a starting point for your final project. You will need to correct any errors you find and write code for the missing sections.
Encroachment agreement : What would be the content of such an "encroachment agreement"? What if only Mr Ferris's home was leaning-would the agreement look different? Is the "reduced market" a result of more than structural worries?
How many luxury sport utility vehicles will be demanded : Suppose that the government decides that the current price of luxury sport utility vehicles is too high. The government passes a price ceiling for this market where the price of a luxury sport utility vehicle is set at $30,000 per vehicle. Given t..
What would happen to his budget line : What would happen to his budget line if  the price of good X decreases to $1.  Draw this new budget line on your graph and label it Budget Line - Find the point  that maximizes the consumer's utility if the consumers income

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the annual depreciation expense

Salvage value is estimated at $50,000. Actual activity was 180,000 units in 2004, and 200,000 units in 2006. Compute the annual depreciation expense for 2006.

  Algorithmic periodic inventory by three methods the units

algorithmic periodic inventory by three methods the units of an item available for sale during the year were as follows

  Compute the amount of realized gross profit to be

swift corp. a capital goods manufacturing business that started on january 4 2012 and operates on a calendar-year basis

  Telmarine companys payroll taxes are fica 8 state

for the year ended december 31 2012 telmarine electrical repair company reports the following summary payroll

  Compute the break-even point expressed in total revenue

St. Joseph hospital has overall variable costs of 30% of total revenue and fixed costs of 42 million per year. Compute the break-even point expressed in total revenue.

  If you were to get a physical from your doctor and he or

if you were to get a physical from your doctor and he or she only took your blood pressure prior to stating that you

  To prevent fraudulent shipments of merchandise

1.to prevent fraudulent shipments of merchandise organizations shoulda.match every receiving slip to an approved

  On january 3 2008 austin corp purchased 25 of the voting

on january 3 2008 austin corp. purchased 25 of the voting common stock of gainesville co. paying 2500000. austin

  What is the effect of the stock dividend on the

an owner of 1000 shares of simmons company common stock receives a stock dividend of 6 shares. a. what is the effect of

  The physical units are the car seats

The physical units are the car seats

  Assume that you are part of the accounting team for logan

assume that you are part of the accounting team for logan digital. the company currently expects to sell 650 units for

  Armstrong is subject to a 40 percent income tax rate

armstrong company manufactures three models of paper shredders including the waste container which serves as the base.

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