Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. presented below is selected information related to

Presented below is selected information related to the financial instruments of Sweet Company...

70.2K

Verified Solution

Question

Accounting

image

Presented below is selected information related to the financial instruments of Sweet Company at December 31, 2020. This is Sweet Company's first year of operations. Investment in debt securities (intent is to hold to maturity) Investment in Chen Company stock Bonds payable Carrying Fair Value Amount (at December 31) $41,800 $42,700 784,000 893,200 234.900 210,900 (a) Sweet elects to use the fair value option for these investments. Assuming that Sweet's net income is $93,500 in 2020 before reporting any securities gains or losses, determine Sweet's net income for 2020. Assume that the difference between the carrying value and fair value is due to credit deterioration. Sweet's net income for 2020 $ (b) Record the journal entry, if any, necessary at December 31, 2020, to record the fair value option for the bonds payable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec 31, 2020 Bonds Payable 24000 Loss on Impairment 24000

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

Finance
1.2K views

Following her 18th birthday, Madison began investing $26 at the end of each week in an...

Psychology
1.2K views

find 2 articles online about black lives matter movement .Read the articles, then respond to the...

Operations Management
1.2K views

After graduation, four college fraternity brothers decide they want to form a business together. They want...

Physics
1.2K views

All are true 26 A charge Q is placed at the corner of a cube...

Calculus
1.2K views

Your friend says that the helium used to inflate balloons is a product of radioactive...

Algebra
1.2K views

Do Based on the graphs of f x and g z below answer the following...

Accounting
1.2K views

Accounting is an information system that identifies, records, and communicates the economic events of an...

Accounting
1.2K views

Presented below is an amortization schedule related to Vaughn Company's 5-year, $180,000 bond with a...

Accounting
1.2K views

Use the following information for questions 65-68: Seasons Construction is constructing an office...

Accounting
1.2K views

Problem 3-5A (Algo) Applying the accounting cycle LO P1, P3, P4, P5, P6 On April...

Accounting
1.2K views

28. EBIT is usually the same thing as. A. O funds provided by operations B....

Finance
1.2K views

Problem 2-20 (Algo) Consider the three stocks in the following table. Pt represents price at...