User Account

All Pages

What should sunland company report as a gain on bonds

Assignment Help Accounting Basics
Reference no: EM132736514

Question: Sunland Company purchased $1140000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $1190496 at an effective interest rate of 7%. Using the effective interest method, Sunland Company decreased the Available-for-Sale Debt Securities account for the Carlin, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $3648 and $3792, respectively.

At February 1, 2022, Sunland Company sold the Carlin bonds for $1175400. After accruing for interest, the carrying value of the Carlin bonds on February 1, 2022 was $1180500. Assuming Sunland Company has a portfolio of available-for-sale debt investments, what should Sunland Company report as a gain (or loss) on the bonds?

Reference no: EM132736514

Questions Cloud

What is the net income or loss of the agency for the year : eExpense vouchers for P4,500; Cost of goods sold identified with the agency sales, P72,000. What is the net income (loss) of the agency for the year, 2019?
Design visuals to present imc campaign idea : Design visuals to present IMC campaign idea For Samsung company.
Commit crimes and behave the way they do based on theory : Do you agree or disagree with the theory? Why or why not? Why do people commit crimes and behave the way they do based on your theory?
Broad categories of a manager behavior : There are two broad categories of a manager's behavior: task-oriented and relationship-oriented. Which approach you consider is better than other and why
What should sunland company report as a gain on bonds : At February 1, 2022, Sunland Company sold the Carlin bonds for $1175400. After accruing for interest, the carrying value of the Carlin bonds on February.
Advantages and disadvantages of working in teams : Explain the advantages and disadvantages of working in teams. Also, describe how to determine training needs and how to select the appropriate training methodol
Calculate apple expected return : He does know that a risk-free rate is 2%, a market return is 10%, and Apple's stock beta is 1.20. Help Mr. Jobs and calculate Apple's expected return
Which approach you consider is a better approach : In a team environment, is it a better approach to avoid conflicts to make a harmony in group and speed up decision making or is it better to disagree
Which investment should have higher expected rate of return : Y has a beta of 0.95 and a standard deviation of 30%, half of which is non-systematic risk. Which investment should have a higher expected rate of return?

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