Meman Culver Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and nocredits, with the following descriptions.Feb. 1, 2020Sharapova Company common stock, $100 par, 200 shares$34,500April 1U.S.government bonds, 11%, due April 1, 2030, interest payable April 1 and October 1, 108 bonds of$1,000 par each108,000July 1McGrath Company 12% bonds, par $54,100, dated March 1, 2020, purchased at 104 plus accruedinterest, interest payable annually on March 1, due March 1, 204058,428(a)Prepare entries necessary to classify the amounts into proper accounts, assuming that the debt securities are classified asavailable-for-sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry isrequired, select "No Entry" for the account titles and enter O for the amounts.)Account Titles and ExplanationDebitCredit

Premium on bond issue or investment in bond securities is recorded when the issue price or purchase…

Answered: wing descriptions. arapova Company…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 5RE

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The 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…
Tamarisk Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. F-b. 1.2025 July 1 (a) (5) Sharapova Company common stock, $100 par, 200 shares U.S. government bonds, 11%, due April 1, 2035, interest payable April 1 and October 1, 108 bonds of 31000 par cách McGrath Company 12% bonds, par $54,100, dated March 1, 2025, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2045 Your answer is partially correct. Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2025, using the straight-line method. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Ifna entry is required, select "No Entry for the account titles and enter Ofor the amounts. Round answers to 0 decimal places. 5.19251 Date Account Titles and…
Sage Corp. carries an account in its general ledger called investments, which contained debits for investment purchases, and no credits, with the following descriptions. Feb, 1, 2025 Sharapova Company common stock, $90 par, 180 shares $35,820 April 1 US government bonds 10%, due April 1, 2035, interest payable April 1 and October 1. 108bonds of $1,000 par each 108,000 July 1 McGrath Compnay 12% bonds, par $50,000, dated March 1, 2025, purchased at 104 plus accrued interest, interest payable annually on March 1, 2045 $54,540 Prepare entries neccessary to classify the amounts into proper accounts, assuming that the debt securities are classified as available for sale. Sharapova 200,000 shares outstanding
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.
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.…
ndigo Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. Feb. 1, 2014 Sharp Company common stock, $110 par, 200 shares $38,300 April 1 U.S. government bonds, 12%, due April 1, 2024, interest payable April 1 and October 1,96 bonds of $1,000 par each 96,000 July 1 Grath Company 12% bonds, par $47,300, dated March 1, 2014, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2034 51,084 The Fair Values of the investments on December 31, 2020 were Sharapove Company common stock $28,800 U.S government bonds 130,800 McGarth Company Bonds 52,900 What entry if any would you reccoments ( round your answers to 0 decimal places e.g 2,500) The Us. Gov bonds were sold on July for 116,700 plus accured interest. give the proper entry
The following selected information are made available by AAA company for the current year: Accounts Payable120,000 Bonds Payable 800,000 Warranty payable200,000 Total Liabilities1,300,000 Net Sales1,650,000 Total Assets2,200,000 In the common size statement of financial position, prepaid expense will have a proportional percentage of bonds payable? The total Noncurrent asset of CAM Company is P1,000,000 and the Equity is 1,200,000. The company has no liabilities during the period. If cash and cash equivalent is 500,000, what will be its proportional percentage in the common-size statement of financial position?
Below are selected transactions for Ink Corporation. Ink Corporation began operations on January 1, 2021 and has a fiscal year end of December 31*. Prepare journal entries for each transaction. MUST SHOW ALL YOUR WORK! IF NECESSARY, ROUND AMOUNTS TO NEAREST DOLLAR. Date Transaction Description 08/01/2021 Purchased for cash $95,000 of Zarpo, Inc. 12% bonds at 100 plus accrued interest. The bonds pay interest on August 31* and February 28th. 8/31/2021 Received the semiannual interest payment. 11/30/2021 Sold $45,000 of the bonds at 98 plus accrued interest.
On October 1, 2021, ABC Corporation issued, at 99 excluding accrued interest, 3,000 of its 8% 1,000 bonds The bonds are dated January 1, 2021 and mature on January 1, 2031, and pay interest on July 1 and January 1. The bonds were issued to yield 10%. Based on your audit, the only entry made by the company for the year 2021 was: Debit: Cash 3,030,000 Credit: Bonds payable 3,030,000 How much should the carrying value of the bond be adjusted to reflect its correct balance at December 31, 2021? (If the adjustment is a decrease, put a negative (-) sign before the numerical answer; if the adjustment is an increase, leave the numerical figure as positive)
Peter Corp. issued 1,700 7%, 5-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1. The adjusting journal entry on December 31. 2022, to record interest expense, would require a debit to interest expense and credit to interest payable in the amount of Your Answer: Answer The following data is available for Siddiqui Corporation at December 31, 2022: Common stock, par $10 (authorized 1,119,500 shares) Treasury stock (at cost $30 per share) $264.900 $1,430 Based on the data, how many shares of common stock are outstanding? (Round your answer to the nearest whole number-zero decimal places)
Brazzle Inc. issued $ 200,000 face value bonds at a discount and received $ 185,000 . At the end of 2021 , the balance in the Discount on Bonds Payable account is $ 10,000 . This year's balance sheet will show a net liability of: A. $ 180,000 B. $ 185,000 C. $ 195,000 D. $ 200,000
Culver Corporation issued 2,800 9%, 7-year, $1,000 bonds dated January I, 2022, at face value. Interest is paid. each January I. what is the journal entry to record the sale of these bonds on January I, 2022. what is the adjusting journal entry on December 31, 2022, to record interest expense. what is the journal entry on January I, 2023, to record interest paid.

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