Vaughn Corporation has municipal bonds classified as a held-to-maturity at December 31, 2020. These bonds have a par value of $766,000, an amortized cost of $766,000, and a fair value of $688,000. The company believes that impairment accounting is now appropriate for these bonds.     Prepare the journal entry to recognize the impairment.   What is the new cost basis of the municipal bonds? Given that the maturity value of the bonds is $766,000, should Vaughn Corporation amortize the difference between the carrying amount and the maturity value over the life of the bonds?   At December 31, 2021, the fair value of the municipal bonds is $724,000. Prepare the entry (if any) to record this information.

Carla Vista Corporation issued $5120000 of bonds at face value on January 1, 2024. Carla Vista chose the fair value option for the bonds. At December 31, 2024, the value of the bonds is now $4608000 because the market interest rates have increased. The en on Carla Vista's books would include O No entry would be made O a debit to Unrealized Holding Gain of $512000 a credit to Premium on Bond Payable of $512000 O a debit to Bonds Payable of $512000

On January 2, 2020, $100,000 of 11%, 10-year bonds were issued for $97,000. The $3,000 discount was charged to Interest Expense. The bookkeeper, Mark Landis, records interest only on the interest payment dates of January 1 and July 1. What is the effect on reported net income for 2020 of this error, assuming straight-line amortization of the discount? What entry is necessary to correct for this error, assuming that the books are not closed for 2020?

An investor company purchased $427,000 of 8% bonds from the investee company on January 1, 2020, with interest payable on December 31. The bonds were classified as Available-for-Sale. The bonds sold for $706,390. Using the effective-interest method, the investor company revised the Available-for-Sale Debt Securities account on December 31, 2020 and December 31, 2021 by the amortized discount/premium of $6,470. and $8,200, respectively. At December 31, 2020, the fair value of the investee company bonds was $912,000. At December 31, 2021, the fair value of the investee company bonds was $843,000. What is the amount of unrealized holding gain/loss related to this investment in 2021? (Very important: Just enter the amount. DO NOT put a plus or minus sign in front of the amount.)

At December 31, 2020, the available-for-sale debt securities for Larkspur, Inc. are as follows. Security Cost Fair Value X $28,600 $24,960 Y 13,000 13,520 23,920 18,720 $65,520 $57,200 (a) Prepare the adjusting entry at December 31, 2020, to report the securities at fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Date Account Titles and Explanation Dec. 31 N

General Investment Co. (GIC) purchased bonds on January 1, 2021. GIC's accountant has projected the following amortization schedule from purchase until maturity:   Date Cash Received Interest Revenue Amortization of Discount Amortized Cost     1/1/2021                     $ 194,758     6/30/2021 $ 7,000   $ 7,790     $ 790     195,548     12/31/2021   7,000     7,822       822     196,370     6/30/2022   7,000     7,855       855     197,225     12/31/2022   7,000     7,889       889     198,114     6/30/2023   7,000     7,925       925     199,039     12/31/2023   7,000     7,961       961     200,000                                         Recording the bond purchase would have what effect on the financial statements?

Hagar Corporation has municipal bonds classified as a held-to-maturity at December 31, 2020. These bonds have a par value of $800,000, an amortized cost of $800,000, and a fair value of $720,000. The company believes that impairment accounting is now appropriate for these bonds. Instructions  a. Prepare the journal entry to recognize the impairment.  b. What is the new cost basis of the municipal bonds? Given that the maturity value of the bonds is $800,000, should Hagar Corporation amortize the difference between the carrying amount and the maturity value over the life of the bonds?  c. At December 31, 2021, the fair value of the municipal bonds is $760,000. Prepare the entry (if any) to record this information.

On January 1, 2025, Tamarisk Corporation redeemed $460,000 of bands at 98. At the time of redemption, the unamortized premium was $13,800. Prepare the corporation's journal entry to record the reacquisition of the bonds. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit

In its first year of operations, Wildhorse Corporation purchased, available-for-sale debt securities costing $65.000 as a long-term investment. At December 31, 2022, the fair value of the securities is $60,500. Show the financial statement presentation of the securities and related accounts. Assume the securities are noncurrent. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45)) WILDHORSE CORPORATION Balance Sheet 4 $

Manji