Prepare entries to record the following non-strategic investment transactions of Arrowhead Investment Corporation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) 2023 Mar. 1 Paid $67,980 to purchase a $67,000, two-year, 7.0% bond payable of Action Corporation dated March 1. There was a $95 transaction fee included in the above-noted payment amount. Interest is paid quarterly beginning June 1. Management intends to actively trade bond purchases. Apr. 16 Bought 2,700 common shares of Brandon Motors at $27.00. There was a $95 transaction fee included in the above - noted payment amount. May 2 Paid $52,968 to purchase a five-year, 4.50%, $
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- Requirement 3. Prepare a comprehensive income statement for Thyme Investments for year ended December 31, 2018. Assume net income was $320,000. (Use a minus sign or parentheses to enter a loss.) 2018 Jan. 5 Purchased Vince Company's $525,000 bond at face value. Thyme classified the investment as available-for-sale. The Vince bond pays interest at the annual rate of 6% on June 30 and December 31 and matures on December 31, 2021 Management's intent is to keep the bonds for several years . June 30 Received an interest payment from Vince Dec.31 Received an interest payment from Vince. Dec.31 Adjusted the investment to its current market value of $518.500 .Please answer it in a good accounting form. Thank you! The following selected account balances were taken from the balance sheet of Quitting Corp. as of December 31, 2020, immediately before the take over of the trustee:Marketable securities P300,000Inventories 110,000Land 150,000Building 400,000Additional information:• Marketable securities have present market value of P320,000. These securities have been pledged to secure notes payable of P280,000.• The estimated worth of inventories is P70,000. However, inventories with book value of P50,000 have been pledged to secure notes payable of P60,000. The realizable value of the inventories pledged is estimated to be P40,000.• Land and building are estimated to have a total realizable value of P450,000. This property is pledged to secure the mortgage payable of P250,000.What is the estimated amount available for preferred claims and unsecured creditors out of the EXCESS assets pledged with fully…Instructions Chart of Accounts On February 1, 2020, Aggie Corporation sold its investment in Smith Corporation bonds for $12,500. The bonds have a face CHART OF ACCOUNTS value of $12,000 and a stated interest rate of 10%. The market value of the bonds on December 31, 2019 was $12,300. Aggie Corporation Required: General Ledger Prepare the journal entries to record the sale of the bonds and the adjustments of the unrealized gain or loss. ASSETS REVENUE 111 Cash 411 Sales Revenue 113 Investment in Trading Securities 431 Interest Income 114 Investment in Available-for-Sale Securities 441 Gain on Sale of Available-for-Sale General Journal 117 Interest Receivable Securities 119 Allowance for Change in Fair Value of Investment 121 Accounts Receivable EXPENSES Prepare the journal entries to record the sale of the bonds and the adjustments of the unrealized gain or loss on February 1, 2020. 500 Cost of Goods Sold 141 Inventory 152 Prepaid Insurance 511 Insurance Expense General Journal…
- MSI Inc -(ALL ENTRIES FOR MSI ONLY) KEY for Accounting Component Assets = A Liabilities = L Stockholders' Equity = SE Accounting Component On July 1st 2019, MSI Inc issued $800,000, 3%, 10 year bonds at 103. The bonds pay interest annually. Prepare the Debit (DR) Credit (CR) Account 3 journal entry to record the issuance of the bonds. What is the total cost of borrowing? TOTAL COST OF BORROWING = On January 1st 2020, MSI Inc issues $500,000 4%, 6 year bonds at face value. Prepare the entry to record the issuance of the bonds. On December 31st 2020, MSI Inc does an adjusting entry to record the accrual of interest for #4 above. On January 1st, 2020, MSI pays the accrued bond interest and calls the bonds at 101 (refer to #4 above). Record the payment of interest and redemption of the bonds.Current Attempt in Progress In its first year of operations, Sheridan Corporation purchased available-for-sale debt securities costing $68,500 as a long-term investment. At December 31, 2022, the fair value of the securities is $63.650. Prepare the adjusting entry to record the securities at fair value. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the amounts.) Date Dec. 31 Account Titles and Explanation Debit CreditThe following investment account was taken from the general ledger of One Dream Investment Company: Debt Investments - Fulfilled Dream 6% bonds (2,000,000 face value, due December 31, 2027) Date PR Debit Credit Balance January2, 2022 VR VR P1,812,300 P1,812,300 June 30, 2022 CRJ 60,000 1,752,300 Dec. 31, 2022 CRJ 60,000 1,692,300 Dec. 31, 2022 195,000 1,497,300 In the course of your examination, you obtained the following information: Interest checks were received on June 30 and December 31 and were credited to the investment account. One dream sold P200,000 of its investment on December 31, 2022 for P195,000. Effective interest rate on this investment, as computed by your audit staff, is 8%. (4% - semi annual) One Dream included this investment in a portfolio that is held to collect and for sale. The fair value at December 31, 2022 and 2023 is 97.5 and 105, respectively. How much is the gain or…
- At December 31, 2025, Cullumber Corporation has the following account balances: Bonds payable, due January 1, 2034 Discount on bonds payable Interest payable $1,400,000 76,000 71,000 Show how the above accounts should be presented on the December 31, 2025, balance sheet, including the proper classific CULLUMBER CORPORATION Balance Sheet (Partial) LAAt December 31, 2020, Stellar Corporation has the following account balances: Bonds payable, due January 1, 2029 Discount on bonds payable Interest payable $1,900,000 102,000 # 92,000 Show how the above accounts should be presented on the December 31, 2020, balance sheet, including the proper classifications. (Enter account name only and do not provide descriptive information.) Stellar Corporation Balance Sheet (Partial) $ tAJournalize the entries to record the following selected bond investment transactions for Dip, Inc. You MUST use the accounts outlined in the Chapter 15 narrated PowerPoint presentations – the accounts in your textbook aren’t descriptive enough. Journal entry descriptions are not required. *(Must include all supporting calculations) Date Transaction Description 4/1/2022 Purchased for cash, $50,000 of Bump, Inc. 9% bonds at 100 plus accrued interest. The bonds pay interest on January 31st and July 31st. 7/31/2022 Received the semiannual interest payment. 10/31/2022 Sold $20,000 of bonds at 104 plus accrued interest. 12/31/2022 Accrued interest. 12/31/2022 Marked the debt investments to a market value of $34,000. The debt investments are classified as available for sale investments. 12/31/2023 Market the debt investments to a market value of $31,000. The debt investments are classified as available for sale investments.
- Sheridan Company in its first year of operations provides the following information related to one of its available-for-sale debt securities at December 31, 2025. Amortized cost Fair value Expected credit loss (a) $50,800 41,600 12.450 Your answer is correct. What is the amount of the credit loss that Sheridan should report on this available-for-sale security at December 31, 2025? (Do not leave any answer field blank. Enter O for amounts.) Amount of the credit loss. $ 9200Marigold Company in its first year of operations provides the following information related to one of its available-for-sale debt securities at December 31, 2020. Amortized cost $51,100 Fair value 42,200 Expected credit losses 12,600 A. What is the amount of credit loss that marigold should report on this available-for-sale security at december 31, 2020? Amount of the credit loss $ 8,900 B. Prepare the journal entry to record the credit loss, if any ( and other adjustments needed), at December 31, 2020? date account titles and explanations debit credit 12/31/20 8,900 8,900 Please note that the answer is NOT Debit Loss on available for sale debt securities and Credit avilable for sale debt securities. These are the account titles I can choose from... Accumulated Other…In auditing the books of Ruby Company as of December 31, 2022, before the accounts were closed, you find the investment account balance: INVESTMENT IN PEARL 9% BONDS (DUE DATE JUNE 1, 2027) Date Item Debit Credit Balance Jan. 20 Bonds, P500,000 par acquired at 102 plus accrued interest 517,500 517,500 Mar. 01 Proceeds from sale of bonds, P100,000 face and accrued interest 106,000 411,500 June 1 Interest Received 18,000 393,500 Nov. 01 Amount received on call of bonds, P100,000 face, at 101 and accrued interest 104,750 288,750 Dec. 1 Interest Received 13,500 275,250 During the course of your audit procedures: The company uses the nearest month method in the computation of interest. The bonds were originally dated December 1, 2021, but the bonds were purchased on January 20, 2022. The investments were held for trading purposes The interest are receivable semi-annually, every June 1 and December 1. Pearl 9% bonds were quoted at par as of December 31, 2022.…