please see attached and confirm you can solve each problem
Question 1 (a) Presented below is information taken from a bond investment amortization schedule with related fair values provided. These bonds are classified as available-for-sale. 12/31/10 12/31/11 12/31/12 Amortized cost $185,500 $193,300 $200,000 Fair value $181,000 $196,000 $200,000 Required: i. Indicate, with a reason, whether the bonds were purchased at a discount or a premium. ii. Prepare the adjusting entry to record the bonds at fair value at December 31, 2010. The Securities Fair Value Adjustment account has a debit balance of $4,000 prior to adjustment. iii. iii.Prepare the adjusting entry to record the bonds at fair value at December 31, 2011. (b) At the end of Tanya Corporation's first year of business, it had the following equity investments which were all reported as Trading Securities: Cost Fair Value 12/31/10 12/31/10 Deyan Inc. $150,800 $180,500 Chambers Education Inc. $308,000 $296,000 Nandini Airways $210,000 $205,000 On April 1, 2011, Tanya sold the investment in Nandini Airways for $300,000 and then on May 31, 2011 bought a 10% equity stake in Jet Air for $83,000. The Fair Values of Deyan, Chambers and Jet Air at December 31, 2011 were $200,000, $287,000 and $80,000 respectively. Required: i. Prepare the adjusting entry to record the investments at fair value at 12/31/10 ii Prepare the entry to record the sale on Nandini on April 1, 2011 iii Prepare the adjusting entry to record the investments at fair value at 12/31/11 Question 2 On March 1, 2010, Lancelot Company entered into a contract to build an apartment building. It is estimated that the building will cost $2,200,000 and will take 3 years to complete. The contract price was $2,700,000. The following information pertains to the construction period: 2010 2011 2012 Annual Costs $800,000 $1,100,000 $700,000 Estimated costs to complete 1,400,000 1,100,000 0 Yearly Progress billings 700,000 1,000,000 1,000,000 Yearly Cash collected 880,000 1,100,000 720,000 Required: (Round percentages to exclude decimal points and round dollar amounts to exclude cents) Assuming the percentage-of-completion revenue recognition method is used. (a) Compute the amount of revenue and gross profit to be recognized each year (b) Prepare all necessary journal entries for 2012. Question 1 (a) Presented below is information taken from a bond investment amortization schedule with related fair values provided. These bonds are classified as available-for-sale. 12/31/10 12/31/11 12/31/12 Amortized cost $305,500 $303,300 $300,000 Fair value $310,000 $396,000 $300,000 Required: i. Indicate, with a reason, whether the bonds were purchased at a discount or a premium. ii. Prepare the adjusting entry to record the bonds at fair value at December 31, 2010. The Securities Fair Value Adjustment account has a credit balance of $1,000 prior to adjustment. iii. Prepare the adjusting entry to record the bonds at fair value at December 31, 2011. (b) At the end of Tanya Corporation's first year of business, it had the following equity investments which were all reported as Trading Securities: Cost Fair Value 12/31/10 12/31/10 Deyan Inc. $150,800 $145,500 Chambers Education Inc. $308,000 $309,000 Nandini Airways $210,000 $215,000 On April 1, 2011, Tanya sold the investment in Nandini Airways for $250,000 and then on May 31, 2011 bought a 12% equity stake in Jet Air for $86,000. The Fair Values of Deyan, Chambers and Jet Air at December 31, 2011 were $165,000, $301,000 and $90,000 respectively. Required i. Prepare the adjusting entry to record the investments at fair value at 12/31/10 ii. Prepare the entry to record the sale on Nandini on April 1, 2011 iii. Prepare the adjusting entry to record the investments at fair value at 12/31/11
