Tanner-UNF Corporation acquired as an investment $240 million of 5% bonds, dated July 1, on July...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Tanner-UNF Corporation acquired as an investment $240 million of 5% bonds, dated July 1, on July 1, 2024. Company management is holding the bands in its trading portfolio The market interest rate yield) was 6% for bonds of similar risk and maturity Tanner-UNF paid $220 million for the bonds. The company wil receive interest semternuaty on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2024, was $225 million Required: 1. & 2. Prepare the journal entry to record Tanner UNF's investment in the bonds on July 1, 2024 and interest on December 31, 2024, at the effective (market rate 3. Prepare any additional journal entry necessary for Tanner UNF to report its investment in the December 31, 2024, balance sheet 4. Suppose Moody's bond rating agency downgraded the risk rating of the bands motivating Tanner-UNF to sell the investment on January 2, 2025, for $200 milion Prepare the journal entries required on the date of sale Complete this question by entering your answers in the tabs below. Req 1 and 2 Prepare the journal entry to recent Tanner's investment in the bonds on July 1, 2024 and interest on December 31, 2024, at the effective (market) rate. Note: If no entry is required for transaction/event, select " journal entry required in the first account field. Do not round intermediate calculations. Enter your answers in millons rounded to 1 decimal place, (14.5.500.000 should be entered as 5.3). Show less View Transaction Bat View journal entry worksheet No General Journal Date July 01, 2024 sent in beds Cash Discount on band immant Req 1 and 2 Req3 >> Debit Credit 240,0 Tanner-UNF Corporation acquired as an investment $240 million of 5% bonds, dated July 1, on July 1, 2024. Company management is holding the bands in its trading portfolio The market interest rate yield) was 6% for bonds of similar risk and maturity Tanner-UNF paid $220 million for the bonds. The company wil receive interest semternuaty on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2024, was $225 million Required: 1. & 2. Prepare the journal entry to record Tanner UNF's investment in the bonds on July 1, 2024 and interest on December 31, 2024, at the effective (market rate 3. Prepare any additional journal entry necessary for Tanner UNF to report its investment in the December 31, 2024, balance sheet 4. Suppose Moody's bond rating agency downgraded the risk rating of the bands motivating Tanner-UNF to sell the investment on January 2, 2025, for $200 milion Prepare the journal entries required on the date of sale Complete this question by entering your answers in the tabs below. Req 1 and 2 Prepare the journal entry to recent Tanner's investment in the bonds on July 1, 2024 and interest on December 31, 2024, at the effective (market) rate. Note: If no entry is required for transaction/event, select " journal entry required in the first account field. Do not round intermediate calculations. Enter your answers in millons rounded to 1 decimal place, (14.5.500.000 should be entered as 5.3). Show less View Transaction Bat View journal entry worksheet No General Journal Date July 01, 2024 sent in beds Cash Discount on band immant Req 1 and 2 Req3 >> Debit Credit 240,0
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows: 1 Dec. 31, 20Y3 Dec. 31, 20Y2 2 Assets 3 Cash $155,000.00 $150,000.00 4 Accounts receivable (net)...
-
Please help with no plagari: This week focuses on evaluation models. Discuss the following: What factors ensure an evaluation is successful? Why? How may evaluation results be used in making...
-
The results for March for Savery Parts follow: Actual (based on actual sales of 14,910 units) Master Budget (based on budgeted sales of 17,750 units) Sales revenues $ 278,865 $ 323,050 Less Variable...
-
The homogeneous rectangular block having dimensions a-1.93, b=2.75 as shown, and mass m, rests on the inclined plane which is hinged about a horizontal axis through O. Calculate the minimum value of...
-
Describe the difference between absolute precision and relative precision when estimating a population mean.
-
1. The CEO has asked you to help her decide whether to use LIFO or FIFO for inventory casting. Compute the gross profit earned by the company for both LIFO and FIFO 2 The CEO's bonus is calculated...
-
Find breakeven and target profit and prepare income statement (Learning Objectives 1, 2)} International Productions performs Cats, the play. The average show sells 1,000 tickets at \(\$ 60\) a...
-
Sweetwater Company manufactures two products, Mountain Mist and Valley Stream. The company prepares its master budget on the basis of standard costs. The following data are for March: Required a....
-
The displacement of a particle moving in a straight line is given by the equation of motion f (t) = 13 + 3t -4. Find the average velocity of the particle over the time interval 0
-
B52 Skate Training prepares adjustments annually and showed the following on its June 30, 2023, year-end: Additional information available at year-end: a. The Prepaid Arena Rental of $182,000 was...
-
nstructions 1 . Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3 , using the first - in , first - out...
-
Complete the table below using the relevant apportionment method along with the most appropriate allocation base for each service department. Construction Varnishing Maintenance Canteen Number of...
-
On January 1, 2023, Janna has a tax basis of $18,000 in her Mimikaki stock (Mimikaki has been an S corporation since inception). In 2023, Janna was allocated $23,000 of ordinary income from Mimikaki....
-
a) What are the benefits of private equity? What are the drawbacks? (2pts) Benefits of Private Equity - Higher Returns Potential: Private equity investments often aim for higher returns compared to...
-
Why has Operation Opportunity been a success for Hilton? The Hilton uses technology to screen candidates, so how do they bring that same "light and warmth" to the candidate experience?
-
If Maybelle decided to divide the $20,000 equally and deposit it into the RSP account and the TFSA account, what would be her immediate and future tax advantages be due to her RSP contribution? What...
-
. P13-10B (LO 3, 5) AP Carlotta's Cakes Inc. is a private company reporting under ASPE. It is authorized to issue an unlimited number of common and $3 cumulative preferred shares. The following is...
-
Differentiate. y = ln(3x + 1) ln(5x + 1)
-
Examine the cash flow measures in requirement 2 of the review problem in this chapter. Discuss the meaning of these ratios. Computing Cash Flows from Operating Activities: Indirect Method
-
During 20x7, Arizona Company issued $500,000 in long-term bonds at 96, repaid $75,000 of bonds at face value, paid interest of $40,000, and paid dividends of $25,000. Prepare the cash flows from the...
-
Lower of Cost and Net Realizable Value} Meredith's Appliance Store has the following data for the items in its inventory at the end of the accounting period: \section*{Required:} 1. Compute the...
Study smarter with the SolutionInn App