User Account

All Pages

The fair values of the bonds at the end of each quarter

Assignment Help Accounting Basics
Reference no: EM131006835

Appling Enterprises issued 8% bonds with a face amount of $400,000 on January 1, 2013. The bonds sold for $331,364 and mature in 2032 (20 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. Appling determines interest expense at the effective rate. Appling elected the option to report these bonds at their fair value. The fair values of the bonds at the end of each quarter during 2013 as determined by their market values in the over-the-counter market were the following:

March 31 ........... $350,000
June 30 ........... 340,000
September 30 ........ 335,000
December 31 ......... 342,000

Required:

1. By how much will Appling's earnings be increased or decreased by the bonds (ignoring taxes) in the March 31 quarterly financial statements?

2. By how much will Appling's earnings be increased or decreased by the bonds (ignoring taxes) in the June 30 quarterly financial statements?

3. By how much will Appling's earnings be increased or decreased by the bonds (ignoring taxes) in the September 30 quarterly financial statements?

4. By how much will Appling's earnings be increased or decreased by the bonds (ignoring taxes) in the December 31 annual financial statements?

Reference no: EM131006835

Questions Cloud

How can technology improve management of global logistics : How can technology improve the management of global logistics? Be specific with examples - How important is intermodal transportation with respect to global logistics?
The mission of your group is to reach consensus : In class, each group will meet for 10 to 15 minutes in different areas of the classroom. During that meeting, group members will take turns sharing their suggestions for the purpose of arriving at a single group treatment.
Explain the roles of the various branches of government : Imagine that a founding father of your choice has been brought to the future and you have been given the opportunity to talk with him about our federalist representative form of government. He is interested in learning about the current state of o..
Advantage of naturalistic observation : One advantage of naturalistic observation is that it and Hybrid designs combine the advantages of
The fair values of the bonds at the end of each quarter : By how much will Appling's earnings be increased or decreased by the bonds (ignoring taxes) in the December 31 annual financial statements?
Discuss significant differences between developing countries : From your knowledge on the trade issues of developing countries and the problems developing countries have relative to international trade, define and discuss at least two significant differences between developing countries and transition countri..
Does the government report investment trust funds : When the government creates internal investment pools for management purposes, does the government report the individual investments and income from those investments in the funds that provided the resources?
Find the exact instantaneous rate of change of h : Find the exact instantaneous rate of change of h at the point where x = π / 4. Which function is changing most rapidly at x = 0.25: h(x) = f(g(x)) or r(x) = g(f(x))? Why?
Prepare the journal entry to record interest on june : Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2011, balance sheet.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Pass corporation owns 80 of sindy company purchased at the

pass corporation owns 80 of sindy company purchased at the underlying book value on january 1 2010. on january 1 2010

  Analyze tax implications for star corporation

Analyze the tax implications for the following case study. Apply the IRS codes to calculate a corporation's net operating loss based on net income. Support your conclusions with reference to specific IRS codes and regulations.

  On january 2 20x1 bruce greene invested 10000 in the stock

on january 2 20x1 bruce greene invested 10000 in the stock market and purchased 500 shares of heartland development

  Green is a talented artist and he creates landscape

green is a talented artist and he creates landscape paintings while working in the open air. green originally started

  Precision engineering invested 110000 at 65 percent

precision engineering invested 110000 at 6.5 percent interest compounded annually for 4 years. how much interest on

  Do you think that the net cash flow generated by this

the discussion activity for module 2 is based on case 3.2 measuring income fairly in financial and managerial

  Elburn company-accounts receivable

he ledger of Elburn Company at the end of the current year shows the following: If Elburn uses the direct write-off method to account for uncollected accounts, journalize the adjusting entry at December 31, assuming Elburn determines that Copp's $..

  Black and white has a cost of equity of 11 percent and a

black and white has a cost of equity of 11 percent and a pre-tax cost of debt of 8.5 percent. the firms target weighted

  Amount of negotiable securities

When the client holds a large amount of negotiable securities, auditors need to plan to guard against

  Distinguishing feature of a common law legal system

Under the Anti-Cybersquatting Consumer Protection Act, which of the following is true?

  Calculating the cost of the inventory

Compute the cost of the inventory on December 31, 2010, assuming that the inventory at retail is (a) $294,300 and (b) $359,700.

  Prepare journal entries to record the preceding information

during fy 2014 the voters of surprise county approved construction of a 21 million police facility and an 11 million

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