Business, 28.06.2019 07:00 lil8174

Mills corporation acquired as a long-term investment $240 million of 6% bonds, dated july 1, on july 1, 2018. company management is holding the bonds in its trading portfolio. the market interest rate (yield) was 4% for bonds of similar risk and maturity. mills paid $280 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, 2018, was $270 million. required: 1. & 2. prepare the journal entry to record mills’ investment in the bonds on july 1, 2018 and interest on december 31, 2018, at the effective (market) rate.3. at what amount will mills report its investment in the december 31, 2018, balance sheet? 4. suppose moody’s bond rating agency upgraded the risk rating of the bonds, and mills decided to sell the investment on january 2, 2019, for $290 million. prepare the journal entries to record the sale.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 00:50

At a roundabout, you must yield to a. already in the roundaboutb. entering the roundaboutc. only if their turn signal is ond. only if they honk at you

Answers: 1

Answer

Business, 22.06.2019 05:20

Carmen co. can further process product j to produce product d. product j is currently selling for $20 per pound and costs $15.75 per pound to produce. product d would sell for $38 per pound and would require an additional cost of $8.55 per pound to produce. what is the differential revenue of producing product d?

Answers: 2

Answer

Business, 22.06.2019 11:30

Margaret company reported the following information for the current year: net sales $3,000,000 purchases $1,957,000 beginning inventory $245,000 ending inventory $115,000 cost of goods sold 65% of sales industry averages available are: inventory turnover 5.29 gross profit percentage 28% how do the inventory turnover and gross profit percentage for margaret company compare to the industry averages for the same ratios? (round inventory turnover to two decimal places. round gross profit percentage to the nearest percent.)

Answers: 2

Answer

Business, 22.06.2019 11:30

11. before adding cream to a simmering soup, you need to a. simmer the cream. b. chill the cream. c. strain the cream through cheesecloth. d. allow the cream reach room temperature. student d incorrect which answer is right?

Answers: 2

Answer

You know the right answer?

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

Questions