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steposvetlana [31]
3 years ago
14

On January 1, 2021, Hoosier Company purchased $940,000 of 10% bonds at face value. The bond market value was $985,000 on Decembe

r 31, 2021. Required: Prepare the appropriate journal entry on December 31, 2021, to properly value the bonds assuming the bonds are classified as: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Trading securities. Securities available-for-sale. Held-to-maturity securities.
Business
1 answer:
qaws [65]3 years ago
8 0

Answer:

1.

Dr Bonds 940,000

Cr Cash 940,000

Dr Fair Value adjustment 45,000

Cr Net Unrealized holding gains & losses 45,000

2.

Dr Fair Value adjustment 45,000

Cr Net Unrealized holding gains & Losses 45,000

3.

Dr Investment in bonds 985,000

Cr Discount on bond investment 45,000

Cr Cash 940,000

Explanation:

Hoosier Company Journal entries

1.

Dr Bonds 940,000

Cr Cash 940,000

Dr Fair Value adjustment 45,000

($985,000-$940,000)

Cr Net Unrealized holding gains & losses 45,000

2.

Dr Fair Value adjustment 45,000

Cr Net Unrealized holding gains & Losses 45,000

3.

Dr Investment in bonds 985,000

Cr Discount on bond investment 45,000

Cr Cash 940,000

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Answer:

5%

Explanation:

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Purchasing power can be determined by finding the real interest rate.

Real interest rate = Nominal interest rate - inflation rate

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Provide the names of two (a) asset accounts, (b) liability accounts, and (c) equity accounts.
tamaranim1 [39]

Answer:

two (a) asset accounts

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two libability accounts

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two equity accounts

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Explanation:

3 0
3 years ago
Allstate shipping body forklift for $20,000. It is expected to have a five-year useful life and trade in value of $2,000. Prepar
timama [110]

In order to calculate the depreciation using the double declining balance method you must first calculate the amount of depreciate using the straight line method. After you calculate it by the straight line method, you simply need to double it for this this problem.

The original price is $20,000, and then subtract the $2,000 estimated trade in value and the answer is $18,000. This is the amount that you need to depreciate.

Straight line method: $18,000 divided by the 5 year useful life = $3,600 per year.

Double declining balance = $3,600 x2 = $7,200 per year depreciation.

Year Depreciation Amount

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Options a) and b) can't be true because if the supply curve is gonna shift , it is first going to shift in short run aggregate supply then long run aggregate supply , not the other way around.

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