Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help urgent, with details please! thanks! Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2020: 2020 Jan. 1 Purchased for $421,633 a

help urgent, with details please!
thanks!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2020: 2020 Jan. 1 Purchased for $421,633 a 9.ex, $415,000 Jaguar Corp. bond that matures in five years when the market interest rate was 8.6%. Interest is paid semiannually beginning June 30, 2017. Monkey Mortgage Inc. plans to hold this investment until maturity Mar. 1 Bought 7,500 shares of Mule Corp., paying $34.60 per share. May 7 Received dividends of $2.40 per share on the Mule Corp. shares. June 1 Paid $331,000 for 21,750 shares of Zebra common shares. June 30 Received interest on the Jaguar bond. Aug. 1 Sold the Mule Corp. shares for $34.25 per share. Dec. 31 Received interest on the Jaguar bond. Dec. 31 The fair value of the Zebra shares on this date was $14.95 per share. Assume the fair value of the bonds equalled the carrying value. 2021 Jan. 14 Sold the Zebra shares for $14.75. Required: 1. Prepare an amortization schedule for the Jaguar bond showing only 2020 and 2021. (Enter all the amounts as positive values. Do not round intermediate calculation. Round your final answers to the nearest whole dollar amount.) Answer is not complete. Period Ending Cash Interest Received 0 Period Interest Income 0 Premium Amort. Unamortired Premium Carrying Value 0 421,633 Jan 1/20 June 30/20 Dec. 31/20 June 30/21 Dec. 31/21 2. Prepare the entries to record the transactions described above. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Answer is not complete. No Date General Journal Debit Credit 3. Show how the investments would be reported on Monkey's December 31, 2020, balance sheet. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) MONKEY MORTGAGE INC. Partial Balance Sheet December 31, 2020 Assets Investments Current Assets Non Current investments

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Theory And Analysis Text Readings And Cases

Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey

8th Edition

0471652431, 9780471652434

More Books

Students also viewed these Accounting questions

Question

Explain all drawbacks of the application procedure.

Answered: 1 week ago

Question

Determine Leading or Lagging Power Factor in Python.

Answered: 1 week ago