Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1,2020, thackeray company purchased 5%

On January 1,2020, Thackeray Company purchased 5% bonds having a maturity value of...

60.1K

Verified Solution

Question

Accounting

On January 1,2020, Thackeray Company purchased 5% bonds having a maturity value
of $200,000 for $216,221.79. The bonds provide the bondholders with a 4% yield. They
are dated January 1,2020, and mature December 31,2029, with interest receivable
annually on December 31 of each year. Thackeray Company uses the effective-interest
method to allocate unamortized discount or premium and classifies the bonds as trading
securities. As of December 31,2020 the bonds have a fair (market) value of $214,000.
What adjusting journal entry (if any) should Thackeray Company record to adjust the
value of the bonds to their fair value as of December 31,2020?
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

TOPIC: Challenges of Veterans: Transition from Military to Civilian Life Your final paper should be 3 to...

Psychology
Q

3 Which of the following forces contribute to asymmetric distribution of ions across the membrane...

Biology
Q

A particle of mass 20 g is released with an initial velocity 5 m s...

Physics
Q

5 m EFG 121 H D 39

Geometry
Q

Decimal 14 equals O 1110 B SOC in hexadecimal

Basic Math
Q

A company estimates that $250,000 of its credit sales may be uncollectible. Select...

Accounting
Q

Fair 524.000 Option contract designated as a cash flow hedge of a forecasted...

Accounting
Q

Tamarisk, Inc. issues $258,000, 10-year, 10% bonds at 96. Prepare the journal entry to record...

Accounting
Q

Cost of goods sold equals beginning finished goods inventory, plus cost of goods manufactured, less...

Accounting
Q

Use the following info for Questions 5 and 6. On June 20, 2022 Amazon Inc....

Accounting
Q

27.Which statement is false regarding the preparation of the indirect method of the statement of...

Accounting
Q

Is the Treynor ratio a good performance indicator? Contextualize / Compare against other measures.

Finance