Business
Business, 15.02.2021 20:10, Tren17

Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $220 million of 8% bonds, dated January 1, on January 1, 2018. Management intends to have the investment available for sale when circumstances warrant. When the company purchased the bonds, management elected to account for them under the fair value option. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $201 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2018, was $210 million. Required:
a. Prepare the journal entry to record Fuzzy Monkey’s investment on January 1, 2018.
b. Prepare the journal entry by Fuzzy Monkey to record interest on June 30, 2018.
c. Prepare the journal entries by Fuzzy Monkey to record interest on December 31, 2018.

answer
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 01:50, Kana81
You are an employee of an u. s. firm that produces personal computers in thailand and then exports them to the united states and other countries for sale. the personal computers were originally produced in thailand to take advantage of relatively low labor costs and a skilled workforce. other possible locations considered at that time were malaysia and hong kong. the u. s. government decides to impose punitive 100% ad valorem tariffs on imports of computers from thailand to punish the country for administrative trade barriers that restrict u. s. exports to thailand. how do you think your firm should respond? what does this tell you about the use of targeted trade barriers?
Answers: 3
image
Business, 22.06.2019 13:30, Hcalhoun21
How does hipaa address employee’s access to e-phi?
Answers: 1
image
Business, 22.06.2019 20:20, jskdkfjf
Fractional reserve banking which of the following statements about fractional reserve banking are correct? check all that apply. fractional reserve banking allows banks to create money through the lending process. fractional reserve banking does not allow banks to hold excess reserves. fractional reserve banking allows banks to create additional wealth by lending some reserves. fractional reserve banking relies on everyone not withdrawing their money at the same time.
Answers: 2
image
Business, 23.06.2019 07:40, babyquinnz
Donald has created a trust for the benefit of his three nephews, huey, dewey, and louie, who are all minors. donald plans on making annual contributions to the trust. donald would like his annual contributions to the trust to qualify for the annual exclusion. what would be the best way to accomplish this goal? a)
Answers: 3
Do you know the correct answer?
Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $220 million of 8% bonds, dated...

Questions in other subjects:

Konu
History, 03.11.2020 18:50