Business, 20.12.2019 03:31 mostman077

Tanner-unf corporation acquired as a long-term investment $240 million of 6% bonds, dated july 1, on july 1, 2018. the market interest rate (yield) was 8% for bonds of similar risk and maturity. tanner-unf paid $200 million for the bonds. the company will receive interest semi-annually on june 30 and december 31. company management is holding the bonds in its trading portfolio. as a result of changing market conditions, the fair value of the bonds at december 31, 2018, was $210 million.
1. & 2. prepare the journal entry to record tanner-unf’s investment in the bonds on july 1, 2018 and interest on december 31, 2018, at the effective (market) rate.
3. prepare any additional journal entry necessary for tanner-unf to report its investment in the december 31, 2018, balance sheet.
4. suppose moody’s bond rating agency downgraded the risk rating of the bonds motivating tanner-unf to sell the investment on january 2, 2019, for $190 million. prepare the journal entries to record the sale.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 17:20, shakira11harvey6

Andy owns islander surfboard inc. in the past, andy has always given his employees bonuses during the holidays if they reached certain sales goals. this year, even though the company is thriving, he decided to cut bonuses from employees and award them to himself instead. what ethical theory of leadership is andy following?

Answers: 1

continue

Business, 22.06.2019 19:10, saabrrinnaaa

Do it! review 16-3 the assembly department for right pens has the following production data for the current month. beginning work in process units transferred out ending work in process 0 22,500 16,000 materials are entered at the beginning of the process. the ending work in process units are 70% complete as to conversion costs. compute the equivalent units of production for (a) materials and (b) conversion costs. materials conversion costs the equivalent units of production

Answers: 2

continue

Business, 22.06.2019 19:10, soevse

Fortress international, a large conglomerate, procures a few component parts from external suppliers and also manufactures some of the key raw materials in its own subsidiaries. aside from this, the company does not solely depend on outside distributors to reach its customers. in fact, it has its own retail stores to distribute its products. in this scenario, which of the following alternatives to vertical integration is fortress international applying? a. concentric integration b. taper integration c. horizontal integration d. conglomerate integration

Answers: 1

continue

Business, 23.06.2019 00:40, Cooldude4676

In 2017, "a public university was awarded a federal reimbursement grant" of $18 million to carry out research. of this, $12 million was intended to cover direct costs and $6 million to cover overhead. in a particular year, the university incurred $4 million in allowable direct costs and received $3.4 million from the federal government. it expected to incur the remaining costs and collect the remaining balance in 2018. for 2017 it should recognize revenues from the grant of

Answers: 3

continue

You know the right answer?

Tanner-unf corporation acquired as a long-term investment $240 million of 6% bonds, dated july 1, on...