User Account

All Pages

Prepare the journal entries required to record investment

Assignment Help Financial Accounting
Reference no: EM132954574

Gums Ltd acquired 10 000 8% bonds (with a par value of N$100 each) at 102% (at a 2% premium) on 1 January. These 5 year bonds will be redeemed at 110% (at a 10% premium). Interest on the bonds is payable annually on 31 December. Assume no transaction costs.

  • Gums intend to hold the bond to collect the contractual cash flows as opposed to being held for short term profit making.
  • The bonds traded on the stock exchange at 103,5% on 30 December 2020

REQUIRED

Problem 1: Prepare the journal entries required to record the investment in the bonds in the general ledger of Gums Ltd for the year ended 30 December 2020. Ignore taxation. Narrations are not required

Reference no: EM132954574

Questions Cloud

Find out the value of sales : Find out the value of sales if all three companies operating income is 10% of cost of goods sold, cost of goods sold is equal to gross profit in all economics
How might impact the financial statement reviewed : Considering the size of the investment ($500,000 infusion), provide a conclusion on how it might impact the financial statement reviewed in Unit
How the cost of decommissioning the oil rig should be : Explain how the cost of decommissioning the oil rig should be treated in the financial statements for the year ended 31 December Year 1
What is the main objective of the audit : What is the main objective of the audit of an entity's financial statements? Why is there a need for the CPA firm to understand the business of the audit client
Prepare the journal entries required to record investment : Prepare the journal entries required to record the investment in the bonds in the general ledger of Gums Ltd for the year ended 30 December 2020.
What adjustments have to be made to the capital accounts : What adjustments would have to be made to the capital accounts for a 10 percent stock dividend? Show the new capital accounts
Do an analysis by calculating the remaining percentage : Do an analysis by calculating the remaining percentage of shares owned by Mr. Chen as a result of the financing carried out by stage investors first
Factors affecting a family desire to have children : What are the factors affecting a family's desire to have children?
Discuss the general basics of the regulatory rules applying : Discuss the general basics of the regulatory rules applying to trading and its implications and address the following 1. Economic- social implication

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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