How much total interest will Molly pay using this plan?

Fuzzy Monkey Technologies, Inc., purchased as a short-term investment $250 million of 8% bonds, dated January 1, on January 1, 2

stealth61 [152]

Answer:

A. 1-Jan-21

Dr Investment in Bond $250

Cr Cash $228

Cr Discount on bond investment $22

30-Jun-21

Dr Cash $10

Dr Discount on bond investment $1.40

Cr To Interest revenue $11.40

31-Dec-21

Dr Cash $10

Dr Discount on bond investment $1.47

Cr Interest revenue $11.47

B. $240 million

C. In Million)

31-Dec-21

Dr Fair value adjustment $9.13

Cr Unrealized holding gain or loss - NI $9.13

D. Net cash flow from operating activities= $208 Outflow

Cash flow from investing activities=$0.00

Explanation:

a. Preparation of the relevant journal entries on the respective dates.

1-Jan-21

Dr Investment in Bond $250

Cr Cash $228

Cr Discount on bond investment $22

($250-$228)

(Being to record the investment in bond )

30-Jun-21

Dr Cash $10

($250 * 8% * 6/12)

Dr Discount on bond investment $1.40

($11.40-$10)

Cr To Interest revenue $11.40

($228*10%*6/12)

(Being to record revenue recognition for bond interest and discount amortized)

31-Dec-21

Dr Cash $10

($250 * 8% * 6/12)

Dr Discount on bond investment $1.47

($11.47-$10)

Cr Interest revenue $11.47

($229.40*10%*6/12)

(Being to record revenue recognition for bond interest and discount amortized)

b. Calculation for what amount will Fuzzy Monkey report its investment in the December 31, 2016, balance sheet

Based on the information given we were told that the fair value of the bonds at December 31, 2021, was the amount of $240 million which means that the amount that Fuzzy monkey will report its investment on December 31, 2021 balance sheet will be the fair value amount of $240 million

c. Preparation of any entry necessary to achieve this reporting objective

(In Million)

31-Dec-21

Dr Fair value adjustment $9.13

($240 - $228 - $1.40 - $1.47)

Cr Unrealized holding gain or loss - NI $9.13

(Being to record adjusting entry to record investment at fair value)

d. Calculation for How would Fuzzy Monkey's 2016 statement of cash flows be affected by this investment

STATEMENT OF CASH FLOW (Partial) For 2021

(In million)

Cash flow from operating activities

Short term investment $228

Less: Interest received ($20)

Net cash flow from operating activities $208 Outflow

Cash flow from investing activities $0.00

6 0

3 years ago

Allison wants to become an MLO but is unsure about the process in which she must go through to obtain her license. She needs som

ladessa [460]

Answer: See explanation

Explanation:

The steps that Allison must take in order to obtain her mortgage loan originator license include the following:

Step 1. In order to get the license, Allison should be at least 18 years old.

Step 2. Allison should register with Nationwide Mortgage Licensing System and Registry after which she'll get an NMLS number.

Step 3. Allison would then have to finish the 20 hours pre-licensure education aftee which she must pass it by having a score of at least 75%.

Step 4. Allison would then go through a criminal background check if she scores at least 75% and get the credit report.

8 0

3 years ago

Which statement is the best definition of the price elasticity of demand?The ratio of the percent change in demand to the percen

Vikki [24]

Answer:

The ratio of the percent change in quantity demanded to the percent change in price.

Explanation:

Price elasticity of demand measures how responsive quantity demand is to changes in price.

The formula is given by

Price elasticity of demand= Percetage change in demand/ Percentage change in price

Usually the price elasticity bis negative. Goods that don't obey the law of demand have positive elasticity.

7 0

3 years ago

Read 2 more answers

The City of Mayville had total fund balance in its General Fund of $200,000 on December 31, 2019. The City of Maysville's Genera

Svetradugi [14.3K]

Answer:

$38,000

Explanation:

Based on the information given we were told that the City General Fund balance sheet for the month of December 31, 2019 shows that inventory had the amount of $28,000 while prepaid rent has the amount of $10,000 which means that the amount of money that city will report as NOSPENDABLE fund balance in their general fund on December 31,2019 will be $38,000 calculated as ($28,000+$10,000).

4 0

3 years ago

Effective team functioning is critical in ensuring the best performance. Which of these characteristics is critical in team lead

sladkih [1.3K]

<h2>Maintain Situational awareness (Option A)</h2>

Explanation:

Option A:

A good leader should have good presence of mind, should be good at acting wisely during critical situation and show is smartness based on the situation. Smart work best works in most of the critical situation.

Option B: No organization makes anyone sole responsible because both victory and defeat needs to be shared by team since everything is team work.

Option C: Discussion is always desired among team member because it is team work and a leader will lead a team.

Option D: Taking multiple job is not so fair unless and until it is measurable and achievable.

8 0

3 years ago