am so happy if you solve all of them(5 questions) thank you so much
Question 1 On January 1, 2018, Final Company purchased bonds having a ty value of $100,000 for 5108,660. The bonds provide the bondholders with a Syield. They are dated January 1, 2018 and mature January 1, 2023, with interest receivable December 31 of each year Final Company's business model is to hold these bonds to collect contractual cash flows. Required Prepare the journal entry to record the purchase of bonds 2. Prepare the journal entry to record the interest received and the more for 2018 4. Prepare the journal entry to record the interest received and the montiration for 2019. 3102/19 Question 2 Presented below is information taken from a bond investment amore schedule with related fair values provided. These boods are managed to profit from changes in market interest rates 31/12 31022 Amortied Cost 5491,150 5519442 SSSOOO Fair Value 197,000 509,000 Required: 1. Indicate whether the bonds were purchased at a discounter a promice, 2. Prepare the adjusting entry to record the bends at fair value at December 31, 2018. The Fair Value Adjustment account has a debit balance of 1,000 peor test 3. Prepare the adjusting entry to record the bondsat fair value W December 31, 2019 Osestion Final Company acquired 10% of the outstanding shares of Cho Corporation de Juary 18, 2018. The purchase price was $12.5000,000 for 50,000 shares. Che Corporatie declared and paid an $80 per share cash dividend on March 29 and on June 26, 2018. Cho reported net income of 57.3000,000 for 2018. The fair value of Cho's shoes was $2,700 per shares December 31, 2018 Required: 1. Prepare the journal entries for Final Company. These investeld be disified as trading 2. Prepare the journal entries for Final Company, assuming 30% of the standing shares of Cho 3. Al what aount is the investment reported on the statement of financial position under each of these methods at December 31, 2018? What is the al net income reported in 2013 under each of these methods? Question 4 Final Company has the following investments in its investment portfolio on December 31, 2017 (all investments were purchased in 2017) (1) 3,000 ordinary shares of Anderson Company which cost $58,500, (2) 10,000 ordinary shares of Munter Company which cost 5580,000, and (3) 6,000 preference shares of King Company which cost $255,000. The Fair Value Adjustment account shows a credit balance of S10,100 at the end of 2017. In 2018, Final Company completed the following investment transactions a. On January 15, sold 3,000 ordinary shares of Anderson Company at 522 per share less fees of $2.150. b. On April 17, purchased 1,000 ordinary shares of Castle Company at $33.30 per share plus fees of $1,980. On December 31, 2018, the fair values per share of these investments were: Munter 561, King S40, and Castle S29. Final company classifies these investments as trading Required: 1. Prepare the entry for the sale on January 15, 2018 2. Prepare the journal entry to record the purchase on April 17, 2018 3. Compute the unrealized gains or losses and prepare the adjusting entry on December 31, 2018. 4. How should the unrealized gains or losses be reported on Final Company's financial statements. 5. Assuming the investment in King Company preference shares is classified as non-trading, briefly describe the accounting and reporting of this investment. Questions On January 1, 2018, Final Company purchased S400,000,8% bonds of Aguirre Company for $369,114. The bonds were purchased to yield 10% interest. Interest is payable semiannually on July and January 1. The bonds mature on January 1, 2023. Final Company plans to hold these bonds to collect contractual cash flows. On January 1, 2020, after receiving interest, Final Company sold the bonds for $370,276 to meet its liquidity needs Required: 1. Prepare the journal entry to record the purchase of bonds 2. Prepare a bond amortization schedule. 3. Prepare the journal entries to record the semiannual interest on July 1, 2018 and December 31, 2018 4. Prepare the journal entry to record the sale of bonds on January 1, 2020 Question 1 On January 1, 2018, Final Company purchased 7% bonds having a maturity value of $100,000 for $108,660. The bonds provide the bondholders with a 5% yield. They are dated January 1, 2018 and mature January 1, 2023, with interest receivable December 31 of each year. Final Company's business model is to hold these bonds to collect contractual cash flows. Required: 1. Prepare the journal entry to record the purchase of bonds. 2. Prepare a bond amortization schedule. 3. Prepare the journal entry to record the interest received and the amortization for 2018. 4. Prepare the journal entry to record the interest received and the amortization for 2019. Question 2 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. 31/12/18 31/12/19 31/12/20 Amortized Cost $491,150 $519,442 $550,000 Fair Value 497,000 509,000 550,000 Required: 1. Indicate whether the bonds were purchased at a discount or at a premium. 2. Prepare the adjusting entry to record the bonds at fair value at December 31, 2018. The Fair Value Adjustment account has a debit balance of $1,000 prior to adjustment. 3. Prepare the adjusting entry to record the bonds at fair value at December 31, 2019. Question 3 Final Company acquired 10% of the outstanding shares of Cho Corporation on January 18, 2018. The purchase price was $12,5000,000 for 50,000 shares. Cho Corporation declared and paid an $80 per share cash dividend on March 29 and on June 26, 2018. Cho reported net income of $7,3000,000 for 2018. The fair value of Cho's shares was $2,700 per share at December 31, 2018. Required: 1. Prepare the journal entries for Final Company. These investments should be classified as trading. 2. Prepare the journal entries for Final Company, assuming 30% of the outstanding shares of Cho Corporation were purchased on January 18. 3. At what amount is the investment reported on the statement of financial position under each of these methods at December 31, 2018? What is the total net income reported in 2018 under each of these methods? Question 4 Final Company has the following investments in its investment portfolio on December 31, 2017 (all investments were purchased in 2017): (1) 3,000 ordinary shares of Anderson Company which cost $58,500, (2) 10,000 ordinary shares of Munter Company which cost $580,000, and (3) 6,000 preference shares of King Company which cost $255,000. The Fair Value Adjustment account shows a credit balance of $10,100 at the end of 2017. In 2018, Final Company completed the following investment transactions. a. On January 15, sold 3,000 ordinary shares of Anderson Company at $22 per share less fees of $2,150. b. On April 17, purchased 1,000 ordinary shares of Castle Company at $33.50 per share plus fees of $1,980. On December 31, 2018, the fair values per share of these investments were: Munter $61, King $40, and Castle $29. Final company classifies these investments as trading. Required: 1. Prepare the entry for the sale on January 15, 2018. 2. Prepare the journal entry to record the purchase on April 17, 2018. 3. Compute the unrealized gains or losses and prepare the adjusting entry on December 31, 2018. 4. How should the unrealized gains or losses be reported on Final Company's financial statements. 5. Assuming the investment in King Company preference shares is classified as non-trading, briefly describe the accounting and reporting of this investment. Question 5 On January 1, 2018, Final Company purchased $400,000, 8% bonds of Aguirre Company for $369,114. The bonds were purchased to yield 10% interest. Interest is payable semiannually on Julyl and January 1. The bonds mature on January 1, 2023. Final Company plans to hold these bonds to collect contractual cash flows. On January 1, 2020, after receiving interest, Final Company sold the bonds for $370,276 to meet its liquidity needs. Required: 1. Prepare the journal entry to record the purchase of bonds. 2. Prepare a bond amortization schedule. 3. Prepare the journal entries to record the semiannual interest on July 1, 2018 and December 31, 2018. 4. Prepare the journal entry to record the sale of bonds on January 1, 2020
