Business, 29.01.2021 17:20 xxheartbreakerxx11

Tanner-UNF Corporation acquired as a long-term investment $260 million of 6.0% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 9% for bonds of similar risk and maturity. Tanner-UNF paid $220.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $230.0 million. Required: 1. & 2. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate.
3. At what amount will Tanner-UNF report its investment in the December 31, 2021, 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, 2022, for $210.0 million. Prepare the journal entry to record the sale.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 21:30

An allergy products superstore buys 6000 of their most popular model of air filters each year. the price of the air filters is $18. the cost of ordering and receiving shipments is $12 per order. accounting estimates annual carrying costs are 20% of the price. the supplier lead time is 2 days. the store operates 240 days per year. each order is received from the supplier in a single delivery. there are no quantity discounts. what is the store’s minimum total annual cost of placing orders & carrying inventory?

Answers: 1

Answer

Business, 23.06.2019 04:00

Match the different taxes to the levels at which these taxes are levied on consumers and businesses national level/ national and local levels 1.sales tax 2.income tax 3.payroll tax 4.social security tax 4.property tax

Answers: 1

Answer

Business, 23.06.2019 08:20

Analyze the forces in the marketing environment that have contributed to pinterest’s explosion in popularity?

Answers: 3

Answer

Business, 23.06.2019 13:20

Which type of tax is imposed on specific goods and services at the time of purchase? question 12 options: estate excise general sales value-added

Answers: 1

Answer

You know the right answer?

Tanner-UNF Corporation acquired as a long-term investment $260 million of 6.0% bonds, dated July 1,...