Question
Randy Company invested in $100,000 9% bonds at January 1, 2019, the purchased price was at 92% when effective interest rate was 11%. The company
Randy Company invested in $100,000 9% bonds at January 1, 2019, the purchased price was at 92% when effective interest rate was 11%. The company received interest semiannually in July 1, and January 1 every year for 5 years
If investment was classified as held for collection
On Jan.1,2019 The debt investment is debited to
Answer 1
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On July 1,2019, the interest income should be credited by
Answer 2
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On Dec.31,2019, the interest receivable should be debited by
Answer 3
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On Dec.31,2019, the interest income should be credited by
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the carrying value of investment on Dec.31,2019
Answer 5
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On. Jan.5, 2021 was sold at 96% the gain on selling investment is
Answer 6
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The Fair value of investment at Dec.31, 2020 was $96000 the unrealized gain /Loss should be journalized by
Answer 7
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On Dec.31, 2021, the fair value of investment is $95000 the reduction in fair value resulted from reduction change in credit risk, impairment loss is
Answer 8
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This debt investment held for collection is presented in financial position on
Answer 9
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The gain or loss from selling debt investment is recorded in statement of
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Valuation of Investment Income recognition Statement Years Cash Flows PV55 Present Value Date Interest Accrued 55 Interest received 45 Closing balance ...Get Instant Access to Expert-Tailored Solutions
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