On January 1, 201, JME invested in 5% bonds of Fishing, Inc. that were purchased at...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6649180fd2847_3196649180f36023.jpg)
Transcribed Image Text:
On January 1, 201, JME invested in 5% bonds of Fishing, Inc. that were purchased at par. Interest is paid annually on December 31. Certain data for 20X1 and 20X2 are as follows - year 20X1 #bonds purchased Cost per bond Mkt price of bonds on 12/31 20X2 50 n/a $1,000 97% of face value n/a 95% of face value 1- JME has no other investment securities (disregard Requirement #1 information) 2 These are AVAILABLE-FOR-SALE SECURITIES (AFS) under ASC 220 - i.e., securities bought and are available to sell if cash needs arise or the market conditions are favorable. AFS debt securities are not planned to be sold in the very near future like an actively managed trading security. Nor does JME plan to hold the debt security till it reaches maturity like a "held to maturity" investment. 3-JME applies ASC 320 in both 20X1 and 20X2 4 No investments were sold in 20X1 5- On 2/27/X2 JME sold all the Fishing bonds for cash at a price of $46,500. 6 - Prior to recording the sale of any security, JME records an adjustment to the value of its whole portfolio of AFS 7 You may ignore taxes 1- In the table shown on the next page, you are to record all journal entries, if required, on the dates indicated. Some of the account titles JME uses include: Cash Interest Income Investment in Bonds Fair Value Adjustment Gain on Investments (unrealized OCI) Loss on Investments (unrealized OCI) Reclassification Adjustment (OCI) Gain on Investments (NI) Loss on Investments (NI) On January 1, 201, JME invested in 5% bonds of Fishing, Inc. that were purchased at par. Interest is paid annually on December 31. Certain data for 20X1 and 20X2 are as follows - year 20X1 #bonds purchased Cost per bond Mkt price of bonds on 12/31 20X2 50 n/a $1,000 97% of face value n/a 95% of face value 1- JME has no other investment securities (disregard Requirement #1 information) 2 These are AVAILABLE-FOR-SALE SECURITIES (AFS) under ASC 220 - i.e., securities bought and are available to sell if cash needs arise or the market conditions are favorable. AFS debt securities are not planned to be sold in the very near future like an actively managed trading security. Nor does JME plan to hold the debt security till it reaches maturity like a "held to maturity" investment. 3-JME applies ASC 320 in both 20X1 and 20X2 4 No investments were sold in 20X1 5- On 2/27/X2 JME sold all the Fishing bonds for cash at a price of $46,500. 6 - Prior to recording the sale of any security, JME records an adjustment to the value of its whole portfolio of AFS 7 You may ignore taxes 1- In the table shown on the next page, you are to record all journal entries, if required, on the dates indicated. Some of the account titles JME uses include: Cash Interest Income Investment in Bonds Fair Value Adjustment Gain on Investments (unrealized OCI) Loss on Investments (unrealized OCI) Reclassification Adjustment (OCI) Gain on Investments (NI) Loss on Investments (NI)
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
sally was driving her own car and collided with a pickup truck. Sally sustained $119000 in injuries and her passenger sustained $11000 in injuries. if her coverage was 100/300/50. what are the total...
-
Hello my friend please assist me with my discussion Interest Rates Negotiation is a soft skill that might just be one of the most important skills you will ever learn. For this Discussion you will...
-
Pls see attached documents for my assignment. Questions highlighted in yellow in the word document 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 A buy at par Purchase Price Interest...
-
TCP: the client sends only 1 message to the server hello from TCP Client and the server responds with the uppercase message. Update the program / make a simple chat program so that The client can...
-
The May 2012 revenue and cost information for Houston Outfitters, Inc., follows: Requirement 1. Prepare a standard cost income statement for management through gross profit. Report all standard cost...
-
Tresko Systems completed the following stock issuance transactions: Sep 19 Issued 1,800 shares of Si par common stock for cash of $11.50 per share. Oct 3 Sold 260 shares of S4.50 no-par preferred...
-
Martin Ltd has always had a strategy of product differentiation; that is, providing high-quality products and extracting a price premium from the market. During the recent economic downturn Martin...
-
Jobs arrive randomly at a particular assembly plant; assume that the arrival rate is five jobs per hour. Service times (in minutes per job) do not follow the exponential probability distribution. Two...
-
V PartA For the circuit shown in (gure I}. find the current through and the potential difference across each resistor. _ _ Find the current through 4.0 [I register. For the steps and strategies...
-
Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales...
-
What are the key factors that contribute to conflict during change initiatives, and how can they be proactively addressed?
-
Computing and Recording Interest Capitalization Weld Corporation is constructing a plant for its own use. Weld capitalizes interest on an annual basis. The following expenditures are made during the...
-
2. (35 points) Effect of constraints on optimal solutions. A key result that optimal classifiers pick the most probable class, which defines Bayes optimality. One of the consequences is that optimal...
-
Consider laminar flow of 2 kg/s water through a tube of diameter 5 cm. The water enters at an inlet temperature of 20 C. As a thermal engineer, you are asked to provide sizing of a heater coil...
-
The composition of the in an 99 wt% griffinium alloy at 792 degrees centigrade is (enter the wt% griffinium) 1200 1100 1080,466 3000 Monroium (Mr) 953.64 a+Liquid 779 71.9 +Liquid 91.2 B a+B...
-
True or False. Justify your answer Maria has nvm utility functions v(y)=y and an income of y=1000 initially. She is now offered a bet such that with probability 1/7 to $600 and with probability 6/7...
-
Distinguish among total-moisture content, free-moisture content, equilibrium-moisture content, unbound moisture, and bound moisture.
-
A flexible budget Classifies budget requests by activity and estimates the benefits arising from each activity Presents a statement of expectations for a period but does not present a firm commitment...
-
What are the principal causes of changes in gross profit? pg2
-
Kane Corporation has a practical production capacity of 1 million units. The current years master budget was based on the production and sales of 700,000 units during the current year. Actual...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App