User Account

All Pages

What are any additional journal entry necessary for Tanner

Assignment Help Accounting Basics
Reference no: EM132611663

Question - Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1, 2021. Company management has classified the bonds as an available-for-sale investment. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $200 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $210 million.

Required -

What is the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate.

What are any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2021, balance sheet.

Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2022, for $190 million.

What is the journal entries necessary to record the sale, including updating the fair-value adjustment, recording any reclassification adjustment, and recording the sale.

Reference no: EM132611663

Questions Cloud

What strategy was procter-gamble pursuing : Read the Management Focus on Procter & Gamble (Page 440) and then answer the following questions:
What are the different elements of technical analysis : What is the different factor that influences the choice of technology? And the various ways by which companies acquire technologies?
Applying concept of personal jurisdiction to scenario facts : Applying the concept of personal jurisdiction to scenario facts, discuss why you agree or disagree that the Virginia court has personal jurisdiction over Clean.
Which deferred tax items does roland limited have : The tax base of this asset is $40 000. The tax rate is 30%. As a result, which of the following deferred tax items does Roland Limited have?
What are any additional journal entry necessary for Tanner : What are any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2021, balance sheet
Calculate the weighted average cost of capital : Why is the after-tax cost of debt, rather than its before-tax cost, used to calculate the weighted average cost of capital?
How much will be accumulated at the end of the saving scheme : How much will be accumulated at the end of the savings scheme if you continue with the old weekly deposit size after the interest rate changes
Futures price for a four-month contract : A stock index currently stands at 350. The risk-free interest rate is 8% per annum (with continuous compounding) and the dividend yield on the index is 4% per a
Determine the value of the terminal loss or recapture : Given this information, determine the value of the terminal loss or recapture at the end of year 5. Show calculations in detail.

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