What is the compound journal entry

Assignment Help Financial Accounting
Reference no: EM132885805

Question - On Jan. 1, 2021, ABC purchased bonds for the purpose of both collecting the contractual cash flows and selling the investment. The bonds have a total face value of $6,000,000, interest rate of 8% payable every August 1, and a remaining term of 4 years and 7 months. It paid $6,145,000 inclusive of accrued interest and transaction fee of $50,000. As of the end of the year, the bonds have a fair value of $5,960,000. What is the compound journal entry to update the carrying value of the investment and the balances of the related accounts on Dec. 31, 2021? Also, provide the interest income to be recorded on that same day.

Reference no: EM132885805

Questions Cloud

Create drawing of your simplified functional structure : Create a drawing of your simplified functional structure, identifying the five departments.
Advantages and disadvantages of global free trade : Discuss advantages and disadvantages of global free trade, as opposed to government involvement, regulation, tariffs, direction, support.
Ethics in business or code of ethics in business : Find a article on ethics in business or code of ethics in business.
Determine the amount of any revaluation adjustment necessary : Assuming plant and equipment is carried under the revaluation model, determine the amount of any revaluation adjustment necessary
What is the compound journal entry : What is the compound journal entry to update the carrying value of the investment and the balances of the related accounts on Dec. 31, 2021
Explain the concept of a job-order costing system : Explain the concept of a job-order costing system. Can you provide an example of a manufacturing scenario that would likely implement job-order costing
What is income summary and capital : Focus Consulting has journalized their adjusting entries and prepared their adjusted trial balance. What is income summary and capital
Compute the percent of net sales : Compute the percent of net sales that Abbott Laboratories spends on research and development (R&D)
What is a Current Liabilities - Bank Loan, Current Portion : Suppose a business receives a $476,000 long-term bank loan on December 31, 2019. What is a Current Liabilities - Bank Loan, Current Portion

Reviews

Write a Review

Financial Accounting Questions & Answers

  Planning and budgeting important to organization success

Why are planning and budgeting important to an organization's success? What are some operational and financial impacts as a result from planning and budgeting?

  Find under fifo equivalent units for beginning wip are

If direct materials are added, the process and beginning inventory is 5,000 units that are 25% complete, under FIFO equivalent units (EU) for beginning WIP are

  Compute what is the annual yield-to-maturity of the bond

Compute What is the annual yield-to-maturity of the bond? A one-year zero coupon bond costs $99.43$99.43 today. Exactly one year from today, it will pay $100.

  What amount should hmcc record as compensation expense

What amount should HMCC record as compensation expense for the year ended December 31, 2022, assuming HMCC chooses the option to record forfeitures

  How much is the total liability to be paid on january

How much is the Total Liability to be paid on January 1, 2021? On January 1, 2019, BSA Corp. issued redeemable preference shares equal to par of $3,000,000

  Instead of saving money

Let's say I save $400 per month for 20 years, and my investment grows at 6% the whole time that I'm saving. How much money will I have at the end of 20 years? Now let's say the 20 years have gone by and now instead of saving money, I'm living off my ..

  What is the profit margin for easter egg and poultry company

Easter Egg and Poultry Company has $1,040,000 in assets and $649,000. If the firm has an asset turnover ratio of 4.0 times, what is the profit margin?

  Why income tax expense is generally not equivalent to

When accounting for income tax in accordance with AASB 112 Income Taxes, explain why income tax expense is generally not equivalent to

  Explain the different categories of financial assets

Explain the different categories of financial assets (such as passive investments) and their measurement under IFRS and ASPE

  The procter amp gamble company pampg the financial

the procter amp gamble company pampg the financial statements of pampg are presented in appendix 5b or can be accessed

  Compute basic and diluted eps for the year ended

On January 1, 2013, Tonge Industries had outstanding 620,000 common shares (par $1) that originally sold for $20 per share, and 7,000 shares of 10% cumulative preferred stock (par $100), convertible into 70,000 common shares. Compute basic and dilute..

  Calculate the weighted average cost of capital for sun suria

Sun Suria Berhad holds a combination of debt, common shares and preferred shares, Calculate the weighted average cost of capital and Cost of preferred shares

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd