User Account

All Pages

Record the interest earned and the reclassification

Assignment Help Accounting Basics
Reference no: EM131755847

Question: On december 31, 2015, Leslie Company held an investment in bonds of Kaufmann Company which it categorized as being held to maturity. At that time, the 8%, $100,000 face value bonds had a carrying value of $107,023.56 and were being amortized using the effective interest method based on a market rate of 7%. Interest on these bonds is paid annually each December 31.

On December 31, 2016, after recording the interest earned, Leslie decided to reclassify the Kaufmann Bonds to its available-for-sale catrgory in anticipation of a major restructuring. At that time, the ending quoted market price for teh bonds was $105,000.

Required: Prepare the journal entries on December 31, 2016, to record the interest earned and the reclassification.

Reference no: EM131755847

Questions Cloud

Certification process and tell us : Your turn; Choose a portion of the 139 certification process and tell us about why it is so important.
How the incident command system process might be used : Research and summarize how the Incident Command System (ICS) process might be / or have been used.
What are the key decision making components : What are the key decision making components for how bees decide where to relocate their new hive?
Environmental impact of energy wastage : You are required to make presentation to all staff on how energy wastage can be reduced. This presentation should include the following.
Record the interest earned and the reclassification : On december 31, 2015, Leslie Company held an investment in bonds of Kaufmann Company which it categorized as being held to maturity.
Discuss the cardiovascular system : Discuss the cardiovascular system. There are three types of vessels that belong to the circulatory system which include: arteries, capillaries, and veins.
The implementation of supply chain management result : How does the implementation of supply chain management result in enhanced customer value?
Prepare the journal entry to record the transaction : On December 31, 2015, Riverbed Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Riverbed Co.
Consultative leader decision making style work : Why does consultative leader decision making style work effectively in communities/companies with strong leaders?

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