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!
Problem - Mills Corporation acquired as an investment $240 million of 5% bonds, dated July 1, on July 1, 2021. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 3% for bonds of similar risk and maturity. Mills paid $280 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, 2021, was $270 million.
Required -
1. & 2. Prepare the journal entry to record Mills' investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate.
3. Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December 31, 2021.
4. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2, 2022, for $290 million. Prepare the journal entries required on the date of sale.
What are the purposes of accounting codes? How are they used? Discuss some examples of codes used by manufacturing firms
Your company will need to exchange information with various external parties. Identify the external parties, and specify the information received from
which produces a single product, has prepared the following standard cost sheet. Compute the total, price, and quantity variances for materials and labor.
A new employee suggests that Racer Industries sponsor a company 10-K as a form of advertising. The cost to sponsor the event is $7,200. How many more units must be sold to cover this cost?
What will the accumulated depreciation expense for this purchase (exclude all other plant and equipment) be after its second year of use
A company manufactures two products bubble and squeak
Using segment reporting as an example, explain how standard-setters could use research when planning to impose extra disclosure requirements.
Ted Thomas, single taxpayer with no dependents, has the following transactions in 2010
Baron Company reported the following data: Accounts receivable 120,000. Calculate the Current ratio and Acid-Test ratio
Prepare an Excel worksheet that shows the Ending Inventory Balance and the Cost of Goods Sold for the year
What types of fixed assets are acquired, and what methods are preferred for debt financing? How do those affect how financial information is communicated?
Prepare the year-end closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually
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