User Account

All Pages

Prepare the relevant journal entries on the respective dates

Assignment Help Accounting Basics
Reference no: EM132783067

Question - Fuzzy Monkey Technologies, Inc., purchased as a short-term investment $80 million of 6% bonds, dated January 1, on January 1, 2018. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yield was 8%. The price paid for the bonds was $64 million. Interest is received semi-annually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2018, was $70 million.

Required -

1. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate).

2. At what amount will Fuzzy Monkey report its investment in the December 31, 2018, balance sheet?

3. Prepare entry necessary to achieve this reporting objective.

4. How would Fuzzy Monkey's 2018 statement of cash flows be affected by this investment?

Reference no: EM132783067

Questions Cloud

Determine the business personal property : Wilson Manufacturing Company insures its factory and business personal property under a BPP with the following limits, which satisfy the policy's 80 percent coi
Where would record this information within a tax return : Where would record this information within a 2018 tax return? What form and on what line, and how would calculate what to put in there
How the leadership topic can be used in your own practice : Choose one or more leadership topic(s) from your textbook or from a scholarly source from a previous discussion or assignment from this course and write about.
Calculate the financial ratios for phone corporation : Calculate the following financial ratios for Phone Corporation: (Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 2 d
Prepare the relevant journal entries on the respective dates : The fair value of the bonds at December 31, 2018, was $70 million. Prepare the relevant journal entries on the respective dates
What framework would you use and why : In the Hospital Hope scenario, what do you think was the most important factor that led to the change in practice in the SICU?
Develop an interview guide before conducting the interview : Develop an interview guide before conducting the interview. Identify information that you want to know before the interview and plan clarifying questions.
Lean Operating Systems : Examine at least three different types of waste that can be found in an organization of your choice. Suggest the lean strategies to confront them.
Describe the responsibilities of the registered nurse : What does your State Board of Nursing say about Unlicensed Assistive Personnel and their role, and the role of the Registered Nurse?

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