Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. oriole company purchased, on january 1, 2020, as a

Oriole Company purchased, on January 1, 2020, as an available-for-sale security, $65,000 of the 8%,...

90.2K

Verified Solution

Question

Accounting

Oriole Company purchased, on January 1, 2020, as an available-for-sale security, $65,000 of the 8%, 5-year bonds of Chester Corporation for $60,072, which provides an 10% return. Prepare Orioles journal entries for (a) the purchase of the investment, (b) the receipt of annual interest and discount amortization, and (c) the year-end fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) The bonds have a year-end fair value of $61,750. Assume effective-interest amortization is used.

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Velcro Saddles is contemplating the acquisition of Skiers’ Airbags Inc. The values of the two companies...

Finance
Q

Let x,y ∈ R satisfy x < y. Prove that there exists a q ∈ Q such...

Advance Math
Q

The following design and operating data were taken for a large industrial centrifugal water pump: Parameter Design Operating Flow Q...

Mechanical Engineering
Q

A 1.71 kg ball and a 3.27 kg ball are connected by a 1.76 m...

Physics
Q

Consciousness Psychologists have discovered that human beings experience several different states of consciousness during the course of...

Psychology
Q

The US Constitution is the foundation of our legal and political system. Discuss what you found interesting...

Accounting
Q

Select the terms that best complete the statement A nationwide chain of cooking schools gives...

Statistics
Q

pu Point A is plotted in the graph below 4 2 3 A 23 61...

Algebra
Q

LO.2, 5 Al is a medical doctor who conducts his practice as a sole proprietor....

Accounting
Q

QUESTION: Prepare a balance sheet and income statement as of December 31, 2014. EVERYTHING NEEDED...

Accounting
Q

Howard Company reported the following information for 2014: Sales $ 970,000 Average Operating Assets $...

Accounting
Q

Sitka Industries uses a cost system that carries direct materials inventory at a standard cost....

Accounting