Prepare the journal entries to record purchase of the bonds

Assignment Help Accounting Basics
Reference no: EM133064701

Question - On January 1, 2021, Columbia Ltd. purchased $200,000 of 10%, 10-year bonds at face value (100) with the intention of selling the bonds early the next year. Columbia receives interest semi-annually on July 1 and January 1. At December 31, 2021, which is the company's fiscal year end, the bonds were trading in the market at 97 (this means 97% of face value). Using the fair value through profit or loss model, prepare the journal entries to record (a) the purchase of the bonds on January 1, (b) the receipt of the interest on July 1, and (c) any adjusting entries required at December 31. Record non-strategic investment.

Reference no: EM133064701

Questions Cloud

Prepare a schedule showing the employer total cost : Prepare a schedule showing the employer's total cost of salaries and wages for December for each of the functions for factory, sales and administrative
Health care data analytics : How does departmental and financial data play into health care data analytics? Provide an example. 175-265 words
40402221 Civil Engineering Material and Technology : 40402221 Civil Engineering Material and Technology Assignment Help and Solution, Al Hussein Technical University - Assessment Writing Service
Evaluating corporate-societal relationship : Suggest three ways in which the primary stakeholders can influence the organization's financial performance.
Prepare the journal entries to record purchase of the bonds : Using the fair value through profit or loss model, prepare the journal entries to record (a) the purchase of the bonds on January 1
How long does she need to achieve the amount : She decided to invest in XYZ Trust Fund, giving her return of i = 7%. How long does she need to achieve the amount she wants if she invest RM 15,000 today
Bottom-up and top-down estimating approaches : What are the differences between bottom-up and top-down estimating approaches? Determine advantages and disadvantages for using each approach.
How much should she deposit in her savings account today : Ainul is determined to have RM 20,000 in her savings account in 5 years time. How much should she deposit in her savings account today
What is the preferred dividend per share : Prepare the journal entry to close net income for the year to retained earnings. Net income was $500,000. What is the preferred dividend per share

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute weighed average cost of capital

The cost of common Equity for the Company equals 15 %, cost of preferred stock is 10 % and its after-tax cost of debt is 5 %. Compute Weighed Average cost

  What is the value of each of the four mobikash standards

What is the value of each of the four MobiKash standards listed near the beginning of this case study?

  Discuss wolfgang issue shares via installment

What journal entry should be entered on 30th September

  Prepare the appropriate journal entry to record

What is the net realizable value (book value) Manda Panda should report in its 2011 balance sheet?

  Determine the amount of manufacturing overhead

Determine the amount of underapplied or overapplied manufacturing overhead for the period

  Provide an example of real accounts

Provide an example of real accounts and an example of nominal accounts. Which financial statement contains the information from nominal accounts

  Explain how cash and accrual accounting differs

Explain how cash and accrual accounting differs for each of the events listed in the above scenario and describe the proper accrual accounting

  What was the taxpayer federal benefit

The taxpayer was in the 35% marginal tax bracket in 2016, What was the taxpayer's Federal benefit from the overpayment of his 2016 state income tax

  Calculate the discounted payback period

A company financial analyst estimates that a project that will cost $150,000 will return the following cash flow: Calculate the discounted payback period

  Snipes construction paid for earth-moving equipment by

snipes construction paid for earth-moving equipment by issuing a 300000 3-year note that specified 2 interest to be

  Prepare Liam tax return

Prepare Liam's 2018 tax return using the data in part a along with the following information: IRA contribution $5,000

  The equipment has the following characteristics:

The Winsey Company purchased equipment on January 2, 2010, for $700,000. The equipment has the following characteristics:Estimated service life ......... 20 years 100,000 hours950,000 units of outputEstimated residual value ....... $50,000During 2010..

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