Answered step by step
Verified Expert Solution
Question
1 Approved Answer
LO 5 Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2020: 2020 Jan. 1 Purchased for $408,754 a 7.0%, $402,000 Jaguar Corp.
LO 5 Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2020: 2020 Jan. 1 Purchased for $408,754 a 7.0%, $402,000 Jaguar Corp. bond that matures in five years when the market interest rate was 6.6%. Interest is paid semiannually beginning June 30, 2017. Monkey Mortgage Inc. plans to hold this investment until maturity. Mar. 1 Bought 6,200 shares of Hule Corp., paying $32.70 per share. 0/24 Hay points awarded Scored 7 Received dividends of $1.10 per share on the Mule Corp. shares. June 1 Paid $318,000 for 21,100 shares of Zebra common shares. June 30 Received interest on the Jaguar bond. Aug. 1 5old the Hule Corp. shares for $32.95 per share. Dec. 31 Received Interest on the Jaguar bond. Dec. 31 The fair value of the Zebra shares on this date was $15.00 per share. Assume the fair value of the bonds equalled the carrying value. 2021 Jan. 14 Sold the Zebra shares for $14.80. 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.) Period Ending Cash Interest Period Interest Received Income Premium Amort Unamortized Premium Carrying Value Jan 1/201 June 30/20 Dec 31/20 June 30121 Dec 31/21 5 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.) No Date 0/24 1 points warded Jan 01, 2020 Scored 2 Mar 01, 2020 3 May 07, 2020 4 6 Jun 01, 2020 Jun 30, 2020 6 Aug 01, 2020 General Journal 00 00 00 Debit Credit 00 000 00 3 5 0/24 points awarded Scored 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started