Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please give me answers to the following questions 3 ? Exercise 12.6 (Algo) Troding securities [LO12-1. 12-3] Mais Coepceation acquired as an investroent 5245 millon
please give me answers to the following questions 3 ?
Exercise 12.6 (Algo) Troding securities [LO12-1. 12-3] Mais Coepceation acquired as an investroent 5245 millon of 85 boeds, daked July 1, on Jaly 1, 2021. Compary manegenent is hold ng the bonds in its tading ponfolio. The market interest rate bielca was 6% fot bonds of similar risk and maturty, Mas paid $280 ailion for the bonds. The company will receive irseres semiannusly on June 30 and December 3t As a result of ehanging market condsoms, the fair value of the bonds at December 31, 2021 , was $260 mithon Required: 1. 82 Prepare the journal entry 10 recod Milis invesment in the bonds on buy 1, 2021 and interest or December 34, 2024, at the eflective (markeq rate. 3. Piepare the pussil entry by Mils to record any far value adjustryent necessary for the year ended Decenber 3 t. 2021. 4. Suppose Moodys bond rating abency upgraded the tikk rating of the bonds and Mills decded to sell the investroent on larauary 2. 2022 , for $205 milion Prepare the joumat entries requited on the date of sale. Complete this guestion by ensering youer anwwers in the tabs below. repare the joumal entry by Mills to record any fair value adjustment necessary for the year ended December 31,2021 . (If no entry is equired for a transaction/event, select "No journal entry required" in the first account field. Enter your aniswers in milions rounded fo 1 Hecimal place, (i.eu, 5,500,000 should be entered as 5.5).) Journal entry worksheet Prepare any fournal entry needed to adjust the investment to fair value. Woter Enter debits befce credits Journal entry worksheet Prepare any joumal entry needed to adjust the investment to fair value. Note: Entee debits before credits 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