For each of the 5 problems below, could you find the correct answer for each problem accompanied by all of your reasoning and math for each problem? I need the information in 24 hours or sooner.
Question 1. Question : Johnson Company purchased bonds with a face amount of $400,000 between interest payment dates. Johnson purchased the bonds at 102, paid brokerage costs of $6,000, and paid accrued interest of $10,000 for 3 months. The amount to record as the cost of this long-term investment in bonds is
Question 2. Question : On January 3, 2010, Nixon Co. acquires $100,000 of Jones Company’s 10-year, 10% bonds at a price of $106,418 to yield 9%. Interest is payable each December 31. The bonds are classified as held to maturity.
Assuming that Nixon Co. uses the effective-interest method, what is the amount of interest revenue that would be recognized in 2011 related to these bonds?
Question 3. Question : On its December 31, 2010 balance sheet, Smith Company appropriately reported a $10,000 debit balance in its Securities Fair Value Adjustment (Available-for-Sale) account. There was no change during 2011 in the composition of Smith's portfolio of marketable equity securities held as available-for-sale securities. The following information pertains to that portfolio:
Security Cost Fair Value at 12/31/11
X $125,000 $160,000
Y 100,000 95,000
Z 175,000 125,000
The amount of unrealized loss to appear as a component of comprehensive income for the year ending December 31, 2011 is
Question 4. Question : Valentine Corp. began operations in 2010. An analysis of Valentine's equity securities portfolio acquired in 2010 shows the following totals at December 31, 2010 for trading and available-for-sale securities:
Aggregate Cost $90,000 $110,000
Aggregate Fair Value 65,000 95,000
What amount should Valentine report in its 2010 income statement for unrealized holding loss?
Question 5. Question : On December 31, 2010, Shannon Co. purchased equity securities as trading securities. Pertinent data are as follows:
Security Cost at 12/31/11
A $132,000 $117,000
B 168,000 186,000
C 288,000 258,000
On December 31, 2011, Shannon Corp. transferred its investment in Security C from trading to available for sale because Shannon intends to retain Security C as a long-term investment. What total amount of gain or loss on its securities should be included in Shannon's income statement for the year ended December 31, 2011?
Submitted: 3 years ago.
Category: Business and Finance Homework