User Account

All Pages

Prepare the necessary entries

Assignment Help Accounting Basics
Reference no: EM132621813

Question - On January 1, 2018, Aurora Co. purchased P1,000,000 bonds at 100 which includes accrued interest of 20,000. The bonds mature on December 31, 2021 and pay 12% interest annually beginning December 31, 2018. Commissions paid on the acquisition amounted to P50,000. Aurora's business model is to sell such bonds in the near term to take advantage of fluctuations in fair values for short-term profit making.

Fair value of bonds at the end of:

2018- 102

2019- 100

2020- 98

On March 1, 2020, the P400,000 bonds were sold at 105 which includes accrued interest and incurred 20,000 transaction cost on the sale.

Requirement - Prepare the necessary entries from 2018-2020.

Reference no: EM132621813

Questions Cloud

Prepare journal entries for the transactions : Journal Entries for the Cost Accounting Cycle - Prepare journal entries for the transactions, including the recording, payment, and distribution of the payroll
Principle of plurality : Article explaining and detailing the line of reasoning called Occam's Razor. In your own words explain how you think that the Principle of Plurality
Prepare the journal entries necessary to bring book balance : Prepare the journal entries necessary to bring the company's book balance of cash into conformity with the reconciled cash balance as of June 30
Explain the advances in organizational theory : Explain the advances in organizational theory. Make sure you include key differences between each paradigm or model, as well as at least one theorist.
Prepare the necessary entries : On January 1, 2018, Aurora Co. purchased P1,000,000 bonds at 100 which includes accrued interest of 20,000. Prepare the necessary entries
What is one example of a special needs payment instrument : What is one example of a special needs payment instrument
Identify and explain any ethical implications : Identify and explain any ethical and other professional implications in respect of this business arrangement with SmartTrain Pte Ltd
Open web application security project : The Open Web Application Security Project (OWASP) provides a distillation of several of the most well known sets of computer security principles;
Explain the effects depreciation has on both the cash flows : Explain the effects depreciation has on both the cash flows and the statement of comprehensive incomes of a firm.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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