On December 31, 2018, Marsh Company held Xenon Company bonds in its portfolio of available-for-sale securities. The bonds have a par value of $14,000, carry a 10% annual interest rate, mature in 2025, and had originally been purchased at par. The market value of the bonds at December 31, 2018 was $12,000. The December 31, 2018, balance sheet showed the following:   Marsh Company Partial Balance Sheet December 31, 2018 1 Assets   2 Investment in Available-for-Sale Securities $14,000.00 3 Less: Allowance for Change in Fair Value of Investment (2,000.00) 4   $12,000.00 5 Shareholders’ Equity:   6 Unrealized Holding Gain/Loss $(2,000.00)       On January 1, 2019, Marsh acquired bonds of Yellow Company with a par value of $16,000 for $16,200. The Yellow Company bonds carry an annual interest rate of 12% and mature on December 31, 2023. Additionally, Marsh acquired Zebra Company bonds with a face value of 18,000 for $17,600. The Zebra Company bonds carry an 8% annual interest rate and mature on December 31, 2028. At the end of 2019, the respective market values of the bonds were: Xenon, $13,000; Yellow, $17,000; and Zebra, $20,000. Marsh classifies all of the debt securities as available-for-sale as it does not intend to hold them to maturity nor does it intend to actively buy and sell them. Assume that Marsh uses the straight-line method to amortize any discounts or premiums. Required: 1. Prepare the journal entries necessary to record the purchase of the investments on January 1, 2019, the annual interest payments on December 31, 2019, and the adjusting entry needed on December 31, 2019. 2. What would Marsh disclose on its December 31, 2019, balance sheet related to these investments?

On August 1, 2021, Crane Company acquired 1310, $1000, 9% bonds at 97 plus accrued interest. The bonds were dated May 1, 2018, and mature on April 30, 2027, with interest paid each October 31 and April 30. The bonds will be added to Crane’s available-for-sale portfolio. The preferred entry to record the purchase of the bonds on August 1, 2021 isa. Debt Investments 1310000   Interest Revenue 29475         Discount on Debt Investments 39300       Cash   1300175 b. Debt Investments 1300175         Cash   1300175 c. Debt Investments 1270700   Interest Receivable 29475         Cash   1300175 d. Debt Investments 1270700   Interest Revenue 29475         Cash   1300175

On January 1, 2016, Phoenix Corporation issued 10-year $200,000 bonds with a 6% stated rate of interest at 103. Phoenix Corporation pays the interest annually on December 31 and uses the straight-line amortization method. What is the carrying value of the bonds that Phoenix Corporation will report on its balance sheet at the end of 2017? A. $200,000 B. $206,000 c. $204,800 d. $207,200

Marigold Corp. issued 3, 300 7%, 5-year, $1,000 bonds dated January 1, 2022, at face value. interest is paid each january 1. Prepare the journal entry to record the sale of these bonds on January 1, 2022.

On January 1, 2026, Baker Company purchased, as an investment, 5% bonds, having a maturity value of $150,000, for $138,400. The bonds provide the bondholders with a 7% yield. They are dated January 1, 2026, and mature January 1, 2036, with interest receivable June 30 and December 31 of each year. The securities are classified as available-for-sale. January 1, 2026 June 30, 2026 December 31, 2026 June 30, 2027 December 31, 2027 June 30, 2028 December 31, 2028 Schedule of Interest Revenue and Bond Amortization Amortization Cash Received (2.5%) Interest Revenue (3.5%) 3,750 3,750 3,750 3,750 3,750 3,750 4,844 4,882 4,922 4,963 5,005 5,049 The fair value of the bonds at December 31 of each year-end is as follows. 2026 145,000 2027 148,000 2028 152,000 1,094 1,132 1,172 1,213 1,255 1,299 Carrying Value 138,400 139,494 140,626 141,798 143,011 144,266 145,565 a) Prepare the journal entry at the date of the investment purchase. b) Prepare the journal entries to record the interest received on…

On January 1, 2017, Roosevelt Company purchased 12% bonds, having a maturity value of $500,000, for $537,907.40.The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received January 1 of each year. Roosevelt’s business model is to hold these bonds to collect contractual cash flows.Instructions(a) Prepare the journal entry at the date of the bond purchase.(b) Prepare a bond amortization schedule.(c) Prepare the journal entry to record the interest revenue and the amortization for 2017.(d) Prepare the journal entry to record the interest revenue and the amortization for 2018.

The December 31, 2021, statement of financial position of Bordeaux Corporation includes the following items:                                9% bonds payable due December 31, 2028                           P3,081,000 The bonds were issued on December 31, 2018, and have a face amount of P3,000,000 with interest payable semi-annually on July 1 and December 31 of each year. On January 1, 2022, Bordeaux retired P1,000,000 of these bonds at 98. What amount should Bordeaux report on the company’s 2022 income statement as gain or loss on the retirement of the bonds?

kai.4

Subject :- Accountion

The Colson Company issued $300 000 bonds at 98 on January 1, 2017. The bonds are due January 1, 2022, with interest payable each July 1, and January 1. The Colson company records straight-line amortization Prepare Colson's Journal entry for the January Issue. OCash $300 000 Bonds Payable $300 000 Bonds Payable Cash 5300 000 $300 000 O Cash Prentum on Bonds Payable Bonds Payabte 5306 000 Cash Discount on Bends Payablele Bonds PayablE S6 000 $300 000 $294 000 se oco 300.000