Business, 24.03.2021 23:50 gyexisromero10

Tanner-UNF Corporation acquired as an investment $300 million of 6% bonds, dated July 1, on July 1, 2021. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $250 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 $260 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. Prepare any additional journal entry necessary for Tanner-UNF to 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 $260 million. Prepare the journal entries required on the date of sale.
Journal Entry 4a
Prepare any journal entry needed to adjust the investment to fair value.
Journal Entry 4b
Record the sale of the investment by Tanner-UNF.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 09:30

Oliver's company is planning the launch of their hybrid cars. the company has included "never-before-seen" product benefits in the hybrid cars. which type of advertising should oliver's company use for the new cars?

Answers: 1

Answer

Business, 22.06.2019 21:20

1. what are the unique operational challenges to delivering fresh meals? 2. why is speed of delivery so important for delivered meals? what variety of options contribute to this performance metric? 3. how could operations management concepts be utilized to improve the performance of freshly? 4. what are your typical product delivery times? what would be required to speed these up? 5. what are your delivery batch quantities? how could you reduce batch size and reduce delivery cost simultaneously using operations management concepts?

Answers: 2

Answer

Business, 22.06.2019 22:40

Effective capacity is the: a. capacity a firm expects to achieve given the current operating constraints.b. minimum usable capacity of a particular facility.c. sum of all the organization's inputs.d. average output that can be achieved under ideal conditions.e. maximum output of a system in a given period.

Answers: 1

Answer

Business, 23.06.2019 00:00

Which of the following is not a factor to consider when deciding whether to accept a special order? whether this order will hurt the brand name of the company whether other potential orders would be more profitable whether additional fixed costs would need to be incurred whether the offered price is sufficient to cover prime costs and fixed overhead allocated all of the above

Answers: 2

Answer

You know the right answer?

Tanner-UNF Corporation acquired as an investment $300 million of 6% bonds, dated July 1, on July 1,...

Questions

Business, 19.03.2021 20:20

On a state road map, one inch represents 20 miles. Denise wants to travel from Garden City to Marshalltown, which is a distance of 4 1/4 inches on the...