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Exercise 1 2 - 6 ( Algo ) Trading securities [ LO 1 2 - 1 , 1 2 - 3 ] Mills Corporation acquired
Exercise Algo Trading securities LO Mills Corporation acquired as an investment $ million of bonds, dated July on July Company management is holding the bonds in its trading portfolio. The market interest rate yield was for bonds of similar risk and maturity. Mills paid $ million for the bonds. The company will receive interest semiannually on June and December As a result of changing market conditions, the fair value of the bonds at December was $ million. Required: & Prepare the journal entry to record Mills' investment in the bonds on July and interest on December at the effective market rate. Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January for $ million. Prepare the journal entries required on the date of sale. Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December Note: If no entry is required for a transactionevent select No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to decimal place, ie should be entered as Req and Req Req Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January for $ million. Prepare the journal entries required on the date of sale. Note: If no entry is required for a transactionevent select No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to decimal place, ie should be entered as
Exercise Algo Trading securities LO
Mills Corporation acquired as an investment $ million of bonds, dated July on July Company management is holding
the bonds in its trading portfolio. The market interest rate yield was for bonds of similar risk and maturity. Mills paid $ million
for the bonds. The company will receive interest semiannually on June and December As a result of changing market
conditions, the fair value of the bonds at December was $ million.
Required:
& Prepare the journal entry to record Mills' investment in the bonds on July and interest on December at the
effective market rate.
Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December
Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January
for $ million. Prepare the journal entries required on the date of sale.
Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field. Do not round
intermediate calculations. Enter your answers in millions rounded to decimal place, ie should be entered as
Req and
Req
Req
Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on
January for $ million. Prepare the journal entries required on the date of sale.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field. Do not round
intermediate calculations. Enter your answers in millions rounded to decimal place, ie should be entered as
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