Presented below is information taken from a bond investment amortization schedule, with related fair values provided. These

Question:

Presented below is information taken from a bond investment amortization schedule, with related fair values provided. These bonds are classified as FV-OCI.

Instructions

a. Were the bonds purchased at a discount or at a premium?

b. Prepare the adjusting entry to record the bonds at fair value at December 31, 2020. The fair value adjustment account has a debit balance of $1,000 prior to adjustment.

c. Prepare the adjusting entry to record the bonds at fair value at December 31, 2021.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting Volume 1

ISBN: 978-1119496496

12th Canadian edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

See More Books

Question Posted: Nov 29, 2019 09:24 AM

See More Questions

Presented below is information taken from a bond investment amortization schedule with related fair values provided. These bonds are managed to profit from changes in market interest rates....
The petty cash account has a debit balance of $800. At the end of the accounting period, there is $110 in the petty cash fund, along with petty cash receipts totaling $690. Should the fund be...
Presented below is information related to copyrights owned by Wildhorse Company at December 31, 2020. Cost $8,540,000 Carrying amount 4,360,000 Expected future net cash flows 4,080,000 Fair value...
In the figure shown the block is given along the block Small of the displacement 's motion system is lying on table). of the a spring 3.. Equation_
Fernwood Company's production management is interested in determining the fixed and variable components of supplies cost, a semi variable cost, as measured against direct labor hours. Data for the...
The relationship between drug abuse and crime has been described by the regression (a) Interpret the multiple regression equation. (b) What problems may be associated with the interpretation of this...
how to use reference groups in regression
Medicis Pharmaceutical Corp. makes Solodyn, a prescription oral antibiotic. Medicis warns physicians that "autoimmune syndromes, including drug-induced lupus-like syndrome," may be associated with...
On July 1, 2016, Anne sells Blackacre to Bruce for 20 percent of Blackacre's gross yield for each of the next 5 years with the first payment due on July 1, 2017 and the last on July 1, 2021. Anne's...
The average number of miles a person drives per day is 24. A researcher wishes to see if people over age 60 drive less than 24 miles per day. She selects a random sample of 49 drivers over the age of...
Arantxa Corporation made the following purchases of investments during 2020, the first year in which Arantxa invested in equity securities: 1. On January 15, purchased 9,000 shares of Nirmala Corp.s...
Refer to the 2017 financial statements and accompanying notes of Royal Bank of Canada (RBC) that are found on the companys website (www.royalbank.ca) or at www.sedar.com. Instructions a. What...
The shaft is supported at its ends by two bearings A and B and is subjected to the forces applied to the pulleys fixed to the shaft. Determine the resultant internal loadings acting on the cross...
Consider the situation you addressed in Problem and Exercise 3. Create numeric cost estimates for each of the costs you listed. Calculate the net present value and return on investment. Include a...
The output power $\dot{W}$ of a spinning shaft is a function of torque $T$ and angular velocity $\omega$. Use dimensional analysis to express the relationship between $\dot{W}, T$, and...
In groups of three, pick a local healthcare organization with which you are familiar. Conduct a SWOT analysis on the organization. After completing the SWOT analysis, use the template in exhibit 8.12...
The Dean Door Corporation (DDC) manufactures steel and aluminum exterior doors for commercial and residential applications. DDC landed a major contract as a supplier to Walker Homes, a builder of...
In Exercises 47 and 48, write a two-column proof. GIVENmWYZ = m/TWZ = 45 PROVE SWZ = ZXYW SW X Y N T
Are there any circumstances under which an investor might be more concerned about the nominal return on an investment than the real return?
The cost curve for the city water supply is C(Q) = 16 + 1/4 Q2, where Q is the amount of water supplied and C(Q) is the cost of providing Q acre-feet of water. (An acre-foot is the amount of water...
Information has been collected regarding Orange Companys cash generating unit that includes goodwill. At 31 December 20X5, the assets of the Orange Companys cash generating unit are shown as follows...
Information has been collected regarding Price Inc.s cash generating unit that includes goodwill. At 31 December 20X5, the assets of the Prices CGU are shown as follows (in millions): An impairment...
Lindsay Ltd. reflected the following items in the 20X5 financial statements: Income statement Depreciation expense, machinery .........................................$1,200,000 Amortization expense,...
A first-time shareholder has approached you requesting some advice. The shareholder has received the company's annual report and noticed the following statement in the summary of significant...
View Policies Current Attempt in Progress REI sells snowboards. Assume the following information relates to REI's purchases of snowboards during September. During the same month, 1 0 2 snowboards...
*Please explain how you got the answers* The following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum...

Presented below is information taken from a bond investment amortization schedule, with related fair values provided. These

Question:

12/31/21 $519,442 12/31/22 12/31/20 Amortized cost Fair value $550,000 $497,000 $550,000 $509,000

Step by Step Answer:

a The bonds were purchased at a discount That is they were purchased at less tha...View the full answer

Intermediate Accounting Volume 1

Students also viewed these Business questions