The goal of study skills and strategy instruction is to

Prepare the journal entry to record Mills’ investment in the bonds on July 1, 2018. Prepare the journal entries by Mills to reco

Damm [24]

Answer:

the question is incomplete, so I looked for a similar one and found the following:

"Mills Corporation acquired as a long-term investment $240 million of 5% bonds, dated July 1, on July 1, 2018. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 3% for bonds of similar risk and maturity. Mills paid $280.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31."

At what amount will Mills report its investment in the December 31, 2018, balance sheet?

July 1, 2018, bonds are purchased at a premium

Dr Investment in bonds 240,000,000

Dr Premium on investment in bonds 40,000,000

Cr Cash 280,000,000

December 31, 2018, first coupon payment

Dr Cash 12,000,000

Cr Interest revenue 8,400,000

Cr Premium on investment in bonds 3,600,000

The carrying value of the investment in bonds account = $280,000,000 - $3,600,000 = $276,4000,000 or $276.4 million

Suppose Moody’s bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2, 2019, for $290 million.

January 2, 2019

Dr Cash 290,000,000

Cr Investment in bonds 240,000,000

Cr Premium on investment in bonds 36,400,000

Cr Gain on sale of investments 13,600,000

Explanation:

amortization of bond premium using the effective interest method on first coupon received = ($240,000,000 x 5%) - ($280,000,000 x 3%) = $12,000,000 - $8,400,000 = $3,600,000

Premium on investment in bonds = $40,000,000 - $3,600,000 = $36,400,000

4 0

3 years ago

Johnston Chemicals' president is very excited about the possibility of the firm's British subsidiary having access to customers

iVinArrow [24]

Answer: Cultural factors

Explanation: Socio - cultural factors can affect the operations of companies that operate across various countries. Countries have different cultures and ways of doing things, so when a new company enters this country it needs to adapt to the culture of that country in order to become successful. The European Union (EU) consists of many different cultures. Because Johnston Chemicals is branching into the EU, the wide variety of socio - cultural, economic, technological, legal and political factors in each country will determine how the company will operate, and also how it can become one market over time.

6 0

3 years ago

Successful entrepreneurs are self-nurturing. This means they: A. look to others for strength and encouragement.B. self-finance t

liraira [26]

Answer:

D. believe in themselves and their ideas.

Explanation:

The entrepreneurs will look at other strength and ecouragement. They will finance through both, own and lended funds. The operations will be delegate to their employee and managers if needed. A single person cannot do all the work for a company. It will require to delegate.

The importance of sel-nurturing is to trust on his idea and business vision. Having confidence into their abilities will increase their chance of success.

3 0

3 years ago

Please explain the difference between the assistant to the regional manager and the regional manager.

DochEvi [55]

Assisant regional manager is like the next step down from regional manager,An assistant regional manager is what Dwight shrute wants to be.An assistant to the regional manger is what Dwight Shrute really is.Does that make sense?

6 0

3 years ago

DEFINITION TERM 1. Subtract outstanding checks from the bank balance. 2. Compute the adjusted bank balance. 3. Enter the bank st

solniwko [45]

Complete Question:

What are the correct steps in preparing Bank reconciliation in a chronological order?

Answer:

1. Enter the bank statement balance from the bank statement.

2. Add any unrecorded deposits to the bank balance.

3. Subtract outstanding checks from the bank balance.

4. Compute the adjusted bank balance

5. Enter the company's book balance from its accounting records.

6. Add any unrecorded interest earned to the book balance.

7. Subtract bank fees from the book balance.

8. Compute the adjusted book balance.

Explanation:

In Financial accounting, bank reconciliation can be defined as an evaluation which give a complete details of the financial items responsible for any difference between the balance of the cash account in the balance sheet and the cash balance reported in an entity's bank statement. These reconciliations should be done at regular intervals so as to ensure a balanced record of the cash account are kept by an organization or firm.

A bank reconciliation mainly computed by an accountant, gives the difference between the balance in relation to the bank statement and the cash balance with respect to the accounting records of the depositor in a particular financial institution.

The steps in preparing Bank Reconciliation in a chronological order are;

1. You should enter the bank statement balance from the bank statement.

2. Add any unrecorded deposits to the bank balance.

3. Subtract outstanding checks from the bank balance.

4. Compute the adjusted bank balance

5. Enter the company's book balance from its accounting records.

6. Add any unrecorded interest earned to the book balance.

7. Subtract bank fees from the book balance.

8. Compute the adjusted book balance.

The main purpose of a bank reconciliation is to ensure an accuracy of the depositor's financial information and that of it's bank records.

<em>In a nutshell, after a reconciliation of the bank statement, the adjusted bank balance should be equal to the company's ending adjusted cash balance on the balance sheet.</em>

7 0

3 years ago