Provide the journal entries for each calendar month

Reference no: EM13258756

The company purchased a security at a discount on 1 January 2009.The face value of the security was $1,000,000 and the price paid on1 January 2009 was $967,000. There were no transaction costs. The security matured on 30 June 2009. The company isnot sure how to account for the instrument under the variousavailable classifications. You have been asked to provide the journal entries for each calendar month, commencing 1 January 2009 and ending 30 June2009, to record the security in accordance with AASB139 assuming that it is classified as:

a) Held-to-Maturity

b) At Fair ValueThrough Profit or Loss

c) Available-for-Sale (Note: the following information is provided to assist you with information you may need in responding to this question)

Effective Interest Rate		6.73%

Date	Cash Flow		Interest	Amortised Cost Balance	Fair Value
1/01/2007	-967,000.00			967,000.00	967,000.00
31/01/2007	0.00		5,423.39	972,423.39	971,881.99
28/02/2007	0.00		5,453.80	977,877.19	976,308.60
31/03/2007	0.00		5,484.39	983,361.58	981,884.90
30/04/2007	0.00		5,515.15	988,876.73	987,947.05
31/05/2007	0.00		5,546.08	994,422.81	994,198.24
30/06/2007	1,000,000.00		5,577.19	1,000,000.00	1,000,000.00

Reference no: EM13258756

Questions Cloud

Book review - judicial tyranny the new kings of america : You need to grab the audience's attention from the beginning of the review. The beginning of a book review is one of the most important elements, and it sets the tone for the entire review.

What is the transistors emitter current of bjt amplifier : In a swamped common-emitter BJT amplifier, as shown below, if Vcc = 12 V, R1 = 8.2 k , R2 = 10 k , Rc = 500 , RE = 1 k , VBE = 0.7 V, and = 100, what is the transistor's emitter current

How does it reduce injury : In a car collision, the driver's body must change speed from a high value to zero. This is true whether or not an airbag is used, How does it reduce injury

What is the fair price for this portfoilio : The expiration date of the options are six months from now. The risk free interest rate is 5% per annum. What is the fair price for this portfoilio. Why?

Provide the journal entries for each calendar month : You have been asked to provide the journal entries for each calendar month, commencing 1 January 2009 and ending 30 June2009, to record the security in accordance with AASB139 assuming that it is classified as:

What type of bids our country should accept : Where should the line be drawn on what type of bids our country should accept from foreign countries to prevent threats to our national security?

Explain the surface of a solution containing one mole of x : At 80C the vapor pressures of pure liquids X, Y, and Z are 385, 190, and 66 mmHg respectively. what pressure must be exerted on the surface of a solution containing one mole of X, three moles of Y, and two moles of Z for boiling to begin at 80C

Find the net charge that passes through the element : 1. The net charge through a cross section of a circuit element is given by q(t)=2t+t^2 C. As usual, t is in seconds. Find the current through the element in amperes. 2. the current through a given circuit element is given by i(t)=2e^-t A. As usual..

How to achieve objective to gain on the sale of the clock : Shop for 36 months before selling it. Revez would like the gain on the sale of the clock to be a long-term capital gain. How can he achieve that objective?

User Account

All Pages