{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-27T05:07:20-04:00", "answer_date": "2024-05-27 05:07:20", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1779301", "url": "\/study-help\/questions\/-1779301", "question_creation_date_js": "2024-05-27T05:07:20-04:00", "question_creation_date": "May 27, 2024 05:07 AM", "meta_title": "[Solved] The company acquired as a long - term inv | SolutionInn", "meta_description": "Answer of - The company acquired as a long - term investment $ 2 4 0 , 0 0 0 of 6 % bonds, dated July 1 , on July 1 , 2 0 2 3 . Co | SolutionInn", "meta_keywords": "company,acquired,long,-,term,investment,$,2,4,6,bonds,dated", "question_title_h1": "The company acquired as a long - term investment $ 2 4 0 , 0 0 0 of 6 % bonds, dated July 1 ,", "question_title": "The company acquired as a long - term investment $ 2 4", "question_title_for_js_snippet": "The company acquired as a long term investment $ 2 4 0 , 0 0 0 of 6 bonds, dated July 1 , on July 1 , 2 0 2 3 Company management has the positive intent and ability to hold the bonds until maturity The market interest rate ( yield ) was 8 for bonds of similar risk and maturity The company paid $ 2 0 0 , 0 0 0 for the bonds and will receive interest semiannually on June 3 0 and December 3 1 As a result of changing market conditions, the fair value of the bonds at December 3 1 , 2 0 2 3 , was $ 2 1 0 , 0 0 0 The entry for interest expense has not been recorded yet Required 1 2 Prepare the journal entry to record Mills investment in the bonds on July 1 , 2 0 2 3 and interest on December 3 1 , 2 0 2 3 at the effective ( market ) rate 3 At what amount will Mills report its investment in the December 3 1 , 2 0 2 3 balance sheet ", "question_description": "
The company acquired as a long<\/span>-<\/mo><\/mrow><\/math>term investment $<\/span>2<\/mn>4<\/mn>0<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math> of <\/span>6<\/mn>%<\/mo><\/mrow><\/math> bonds, dated July <\/span>1<\/mn>,<\/mo><\/mrow><\/math> on July <\/span>1<\/mn>,<\/mo><\/mtext>2<\/mn>0<\/mn>2<\/mn>3<\/mn>.<\/mo><\/mrow><\/math> Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate <\/span>(<\/mi><\/mrow><\/math>yield<\/span>)<\/mi><\/mrow><\/math> was <\/span>8<\/mn>%<\/mo><\/mrow><\/math> for bonds of similar risk and maturity. The company paid $<\/span>2<\/mn>0<\/mn>0<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math> for the bonds and will receive interest semiannually on June <\/span>3<\/mn>0<\/mn><\/mrow><\/math> and December <\/span>3<\/mn>1<\/mn>.<\/mo><\/mrow><\/math> As a result of changing market conditions, the fair value of the bonds at December <\/span>3<\/mn>1<\/mn>,<\/mo><\/mtext>2<\/mn>0<\/mn>2<\/mn>3<\/mn>,<\/mo><\/mrow><\/math> was $<\/span>2<\/mn>1<\/mn>0<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn>.<\/mo><\/mrow><\/math> The entry for interest expense has not been recorded yet.<\/span> <\/div>
<\/div>
Required:<\/span><\/div>
1<\/mn>.<\/mo><\/mrow><\/math> & <\/span>2<\/mn>.<\/mo><\/mrow><\/math> Prepare the journal entry to record Mills<\/span><\/mi><\/mrow><\/math> investment in the bonds on July <\/span>1<\/mn>,<\/mo><\/mtext>2<\/mn>0<\/mn>2<\/mn>3<\/mn><\/mrow><\/math>and interest on December <\/span>3<\/mn>1<\/mn>,<\/mo><\/mtext>2<\/mn>0<\/mn>2<\/mn>3<\/mn><\/mrow><\/math> at the effective <\/span>(<\/mi><\/mrow><\/math>market<\/span>)<\/mi><\/mrow><\/math> rate.<\/span> <\/div>
3<\/mn>.<\/mo><\/mrow><\/math> At what amount will Mills report its investment in the December <\/span>3<\/mn>1<\/mn>,<\/mo>2<\/mn>0<\/mn>2<\/mn>3<\/mn><\/mrow><\/math> balance sheet?<\/span> <\/div><\/span> <\/div><\/div>", "transcribed_text": "", "related_book": { "title": "Managerial Accounting", "isbn": "978-0073526706, 9780073526706", "edition": "12th Edition", "authors": "Ray H. Garrison, Eric W. Noreen, Peter C. Brewer", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/104.jpg", "uri": "\/textbooks\/managerial-accounting-12th-edition-9780073526706", "see_more_uri": "" }, "free_related_book": { "isbn": "979-8215934241", "uri": "\/textbooks\/stowaway-to-parts-unknown-979-8215934241-151333", "name": "Stowaway To Parts Unknown", "edition": "" }, "question_posted": "2024-05-27 05:07:20", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/use-lagrange-multipliers-to-find-the-distance-from-the-point-510887", "description": "Use Lagrange multipliers to find the distance from the point (2, 0, -1) to the plane 6x - 2y + 7z+ 1 = 0. X", "stars": 3 }, { "url": "\/on-december-31-2010-berclair-inc-had-200-million-shares-181085", "description": "On December 31, 2010, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. Berclair purchased 24 million...", "stars": 3 }, { "url": "\/study-help\/production-and-operations-management\/what-physical-capacity-should-each-part-of-the-network-have-1883946", "description": "What physical capacity should each part of the network have? The long-term capacity decision. LOP98", "stars": 3 }, { "url": "\/study-help\/theory-of-probability\/if-xii-1-2-3-are-independent-exponential-random-1984809", "description": "If Xi,i = 1, 2, 3, are independent exponential random variables with rates i , i = 1, 2, 3, find (a) P{X1 \n \n \n \n Answered: 1 week ago", "stars": 3 }, { "url": "\/1-develop-a-multiple-regression-equation-using-unemployment-rate-and", "description": "1. Develop a multiple regression equation using unemployment rate and average monthly temperature to predict emergency road service calls. 2. Create a new temperature variable and relate it to...", "stars": 3 }, { "url": "\/study-help\/questions\/a-company-has-recently-paid-a-dividend-of-2-dividends-9905274", "description": "A company has recently paid a dividend of $2. Dividends are forecast to grow by 20% for next period, 10% in the period after that, and then indefinitely at 5%. If the required return is 10% what is...", "stars": 3 }, { "url": "\/study-help\/questions\/on-january-1-20x1-laketown-company-the-user-leased-a-1377758", "description": "On January 1, 20X1, Laketown Company (the user) leased a truck for a seven-year period under a FINANCE LEASE and agreed to pay an annual lease payment of $6,000 at the end of each year. The interest...", "stars": 3 }, { "url": "\/study-help\/questions\/he-cost-of-a-main-fluid-clothing-cleanser-in-various-4958081", "description": "he cost of a main fluid clothing cleanser in various sizes is given underneath. Size (ounces) Cost ($) 16 3.49 32 4.29 64 5.29 200 10.09 Figure the least squares line. Put the condition as: j? : a +...", "stars": 3 }, { "url": "\/study-help\/questions\/3-a-09-ft-diameter-steel-stud-is-mounted-upright-1024171", "description": "3. A 0.9 ft diameter steel stud is mounted upright to the seabed at a water depth of 32 ft. If the pipe is hit by 4.5 ft high waves, exhibiting a wavelength of 26 ft, calculate the: (i) Max. fluid...", "stars": 3 }, { "url": "\/study-help\/questions\/p244a-clarke-inc-operates-the-patio-furniture-division-as-a-1993787", "description": "P24-4A Clarke Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for the year ended December 31, 2017, are as shown below. Prepare responsibility report...", "stars": 3 }, { "url": "\/study-help\/questions\/sorens-favorite-cereal-is-on-sale-a-20ounce-box-costs-1590293", "description": "Soren's favorite cereal is on sale. A 20-ounce box costs $4.59. A smaller, 12-ounce box costs $2.52. Complete the statements to describe which box costs less per ounce. 0 answers", "stars": 3 }, { "url": "\/study-help\/questions\/locate-an-article-that-addresses-drm-digital-rights-management-identify-999628", "description": "Locate an article that addresses DRM (Digital Rights Management) Identify how DRM is being used. Discuss the content holder's reasoning for implementing (or not implementing) DRM on the content....", "stars": 3 }, { "url": "\/study-help\/questions\/figure-1-shows-a-cabling-system-that-will-be-used-1024197", "description": "Figure 1 shows a cabling system that will be used to support utility poles that are to be installed in your companies factory. The pole is a steal pipe and will be supported by a pair of cables at...", "stars": 3 }, { "url": "\/study-help\/questions\/in-this-exercise-you-will-use-a-text-editor-or-8373442", "description": "In this exercise, you will use a text editor or word processor to create an HTML file containing information about yourself. Your page should be divided into the following sections: Brief family...", "stars": 3 }, { "url": "\/marc-company-assembles-products-from-a-group-of-interconnecting-parts", "description": "Marc Company assembles products from a group of interconnecting parts. The company produces some of the parts and buys some from outside vendors. The vendor for Part X has just increased its price by...", "stars": 3 }, { "url": "\/study-help\/business-statistics\/play-this-game-please-ok-friends-weve-got-a-little-1677907", "description": "Play this game, please. OK, friends, weve got a little deal for you. We have a fair coin (heads and tails each have probability 1\/2). Toss it twice. If two heads come up, you win right there. If you...", "stars": 3 }, { "url": "\/study-help\/business-statistics\/course-grades-the-distribution-of-grades-in-a-large-statistics-1677905", "description": "Course grades. The distribution of grades in a large statistics course is as follows: Grade: A B C D F Probability: 0.2 0.3 0.3 0.1 0.1 To calculate student grade point averages, grades are expressed...", "stars": 3 }, { "url": "\/study-help\/business-statistics\/keno-keno-is-a-popular-game-in-casinos-balls-numbered-1677898", "description": "Keno. Keno is a popular game in casinos. Balls numbered 1 to 80 are tumbled in a machine as the bets are placed, then 20 of the balls are chosen at random. Players select numbers by marking a card....", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/-1779300", "next": "\/study-help\/questions\/-1779302" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "The company acquired as a long - term investment $ 2 4", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/-1779301" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }} }