User Account

All Pages

What amount is the balance of investment

Assignment Help Accounting Basics
Reference no: EM132899678

Question - Sara Corporation acquired $6,000,000 of Chris Inc.'s 12% bonds on May 1, 2020 at 94 plus accrued interest to be held as financial asset at amortized cost. The bonds pay interest semiannually on February 1 and August 1, and mature on February 1, 2024. The fiscal period for Sara Corporation is the calendar period. Amortization is done following the straight line method. On May 1, 2022, Sara Corporation sold all the bonds at 105 plus accrued interest.

a. What amount is the total income to be recognized in the Income Statement for 2021?

b. On December 31, 2021, what amount is the balance of investment to be presented in the Statement of Financial Position?

c. What amount is the total income to be recognized in the 2022 Income Statement?

Reference no: EM132899678

Questions Cloud

Determining angle of elevation : The angle of elevation the top of a tree from a point p is. From another point q which is m from the base of the tree, the angle of elevation of the top of the
Calculate the predicted base pay for benchmark job : Calculate the predicted base pay for each benchmark job
Discuss two employee privacy issues-topics : Discuss any two employee privacy issues/topics that were raised in the lectures. You are encouraged to cite examples from the textbook in supporting your discus
Negotiation between palestine and israel : The topic of research is the status of negotiation between Palestine and Israel Required:
What amount is the balance of investment : On December 31, 2021, what amount is the balance of investment to be presented in the Statement of Financial Position
List at least five standard and ancillary costs : List at least five (5) standard and ancillary costs that can apply to international shipping.
Determine the amount of lease payment : Estimated residual value at end of lease (unguaranteed) $20,000. Determine the amount of lease payment that the lessor would require to lease the asset
How should a nonprofit try to navigate the corona crisis : How should a nonprofit try to navigate the Corona Crisis? Can you find suggestions on the web to share? Do you agree with them?
What is narration-animations-transitions and graphics : 1. What is narration, animations, transitions, and graphics?

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