Chapter 13: Q2Q (page 658)
Question: What purpose does the variety in bond features (types and characteristics) serve?
Short Answer
Answer:
Variety in bond features helps investors reduce their risk and generate a high yield.
Chapter 13: Q2Q (page 658)
Question: What purpose does the variety in bond features (types and characteristics) serve?
Answer:
Variety in bond features helps investors reduce their risk and generate a high yield.
All the tools & learning materials you need for study success - in one app.
Get started for freeExplain the accounting for a service-type warranty.
(Equity Method) On January 1, 2017, Pennington Corporation purchased 30% of the common shares of Edwards
Company for \(180,000. During the year, Edwards earned a net income of \)80,000 and paid dividends of $20,000.
Instructions
Prepare the entries for Pennington to record the purchase and any additional entries related to this investment in Edwards Company
in 2017.
Question: With respect to the IASB conceptual framework project:
(a) Work is being conducted to produce separate discussion papers.
(b) Work is being conducted with the FASB.
(c) Work is being conducted to result in a discussion paper covering all the identified areas.
(d) The framework will not address elements of financial statements.
Assume the same information as in IFRS 17-12 except that Roosevelt has an active trading strategy for these bonds.
The fair value of the bonds at December 31 of each end-year is as follows.
2017 \(534,200 2020 \)517,000
2018 \(515,000 2021 \)500,000
2019 $513,000
Instructions
(a) Pepare the journal entry at the date of the bond purchase.
(b) Prepare the journal entries to record the interest revenue and recognition of fair value for 2017.
(c) prepare the journal entry to record the recognition of fair value for 2018.
If the bonds in Question 8 are classified as available-for-sale, and they have a fair value at December 31, 2017, of $3,604,000, prepare the journal entry (if any) at December 31, 2017, to record this transaction.
What do you think about this solution?
We value your feedback to improve our textbook solutions.