On January 2, 2018, MBH Inc. acquired 30% of the voting common stock of Construction Corporation as a long-term investment. Data from Construction Corporation's financial statements for the year ended December 31, 2018, include the following: Net income Dividends paid $145,000 $ 70,000 Required: Prepare any necessary journal entries for MBH at December 31, 2018, under the equity method of accounting for Investments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. In early December of 2018, Blue Corp. purchased $40,800 of Yellow Company bonds, which constitutes less than 3% of Yellow's outstanding debt. Blue accounts for the Yellow investment as available for sale, By December 31, 2018, the value of the Yellow investment had fallen to $30,400, and Blue recorded an unrealized holding loss. By December 31, 2019, the value of the Yellow investment had fallen to $15,400, and Blue determined that it is more likely than not that it will need to sell the bonds before their fair value recovers, so Blue recorded an OTT impairment. By December 31, 2020, fair value had recovered to $20,400 Required: 1-a. Prepare appropriate entry(s) at December 31, 2018. 1-b. Indicate how the scenario will affect net income, OCI, and comprehensive income. Holly Springs, Inc. contracted with Coldwater Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2018. Holly Springs paid for the lathe by issuing a $400,000 note due in three years. Interest, specified at 4%, was payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions for which 8% was a reasonable rate of interest. Holly Springs uses the effective interest method of amortization. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $(Use appropriate factor(s) from the tables provided. Round your intermediate and final answers to the nearest whole dollar.) Required: 1. Prepare the journal entry on January 1, 2018, for Holly Springs' purchase of the lathe. 2. Prepare an amortization schedule for the three-year term of the note. 3. Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry on January 1, 2018, for Holly Springs purchase of the lathe. (If no entry is required for a transaction/e: select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record for the Holly Springs' purchase on January 1, 2018 Note Enter debits before credits Date January 01, 2018 General Journal Debit Credit Racord entry Clear entry View general journal Holly Springs, Inc. contracted with Coldwater Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2018. Holly Springs paid for the lathe by issuing a $400,000 note due in three years. Interest, specified at 4%, was payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions for which 8% was a reasonable rate of interest. Holly Springs uses the effective interest method of amortization. (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your intermediate and final answers to the nearest whole dollar.) Required: 1. Prepare the journal entry on January 1, 2018, for Holly Springs' purchase of the lathe. 2. Prepare an amortization schedule for the three-year term of the note. 3. Prepare the journal entries to record (a) Interest for each of the three years and (b) payment of the note at maturity, Complete this question by entering your answers in the tabs below. Required 1 Required) Required 3 Prepare an amortization Required 2 three-year term of the note. Cash Effective Increase in Year Outstanding Payments Interest Balance Balance 1 2 3 0 Holly Springs, Inc. contracted with Coldwater Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2018. Holly Springs paid for the lathe by issuing a $400,000 note due in three years. Interest, specified at 4%, was payable annually on December 31 of each year. The cash market price of the fathe was unknown. It was determined by comparison with similar transactions for which 8% was a reasonable rate of interest. Holly Springs uses the effective interest method of amortization. (Ey of $1. PV of $1. EVA of S. PVA of $1. EVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided. Round your intermediate and final answers to the nearest whole dollar.) Required: 1. Prepare the journal entry on January 1, 2018, for Holly Springs purchase of the lathe. 2. Prepare an amortization schedule for the three-year term of the note. 3. Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Prepare the journal entries to record () Interest for each of the three years and (b) payment of the note at maturity. (ir no entry required for a transaction/event, select "No journal entry required in the first account field.) View transaction to Journal entry worksheet > Record the interest for first year Now it before and Transcation General Journal Debit Credit Recordandy Cuary View all MacBook On January 1, 2018, Mania Enterprises issued 10% bonds dated January 1, 2018, with a face amount of $19.8 million. The bonds mature in 2027 (10 years). For bonds of similar risk and maturity, the market yield is 8%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Enter your answers in whole dollars.) Required: 1. Determine the price of the bonds at January 1, 2018 2. Prepare the journal entry to record the bond issuance by Mania on January 1, 2018. 3. Prepare the journal entry to record interest on June 30, 2018, using the effective interest method. 4. Prepare the journal entry to record interest on December 31, 2018, using the effective interest method. Complete this question by entering your answers in the tabs below. Re:uired 1 Required 2 Required 3 Required 4 Determine the price of the bonds at January 1, 2018. Bond value
