Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2023, all with intent to hold to maturity. 2023 Jan. 1 Purchased for $427,057 a 7.0%, $420,000 Jaguar Corp. bond that matures in five years when the market interest rate was 6.6%. There was a $$125 transaction fee included in the above-noted payment amount. Interest is paid semiannually beginning June 30, 2023. Monkey Mortgage Inc. plans to hold this investment until maturity. Mar. 1 Bought 8,000 shares of Mule Corp., paying $34.50 per share. There was a $125 transaction fee included in the above-noted payment amount. May 7 Received dividends of $2.90 per share on the Mule Corp. shares. Paid June 1 Paid $336,000 for 22,000 shares of Zebra common shares. There was a $$125 transaction fee included in the above-noted payment. June 30 Received interest on the Jaguar bond. Aug. 1 Sold the Mule Corp. shares for $34.75 per share. Dec. 31 Received interest on the Jaguar bond. Dec. 31 The fair value of the Zebra shares on this date was $15.00 per share. Assume the fair value of the bonds equalled the carrying value. 2024 Jan. 14 Sold the Zebra shares for $14.80. Required: 1. Prepare an amortization schedule for the Jaguar bond showing only 2023 and 2024. (Enter all the amounts as positive values. Do not round intermediate calculation. Round your final answers to the nearest whole dollar amount.) Period Ending Jan. 1/23 June 30/23 Dec. 31/23 June 30/24 Dec. 31/24 Cash Interest Period Interest Received Income $ 14,700 S 14,700 14,700 14,700 Premium Amort. 14,093 $ 14,073 14,052 14,031 607 627 648 669 Unamortized Premium $ Carrying Value 7,057 $ 6,450 5,823 5,175 4,506 427,057 426,450 425,823 425,175 424,506
Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2023, all with intent to hold to maturity. 2023 Jan. 1 Purchased for $427,057 a 7.0%, $420,000 Jaguar Corp. bond that matures in five years when the market interest rate was 6.6%. There was a $$125 transaction fee included in the above-noted payment amount. Interest is paid semiannually beginning June 30, 2023. Monkey Mortgage Inc. plans to hold this investment until maturity. Mar. 1 Bought 8,000 shares of Mule Corp., paying $34.50 per share. There was a $125 transaction fee included in the above-noted payment amount. May 7 Received dividends of $2.90 per share on the Mule Corp. shares. Paid June 1 Paid $336,000 for 22,000 shares of Zebra common shares. There was a $$125 transaction fee included in the above-noted payment. June 30 Received interest on the Jaguar bond. Aug. 1 Sold the Mule Corp. shares for $34.75 per share. Dec. 31 Received interest on the Jaguar bond. Dec. 31 The fair value of the Zebra shares on this date was $15.00 per share. Assume the fair value of the bonds equalled the carrying value. 2024 Jan. 14 Sold the Zebra shares for $14.80. Required: 1. Prepare an amortization schedule for the Jaguar bond showing only 2023 and 2024. (Enter all the amounts as positive values. Do not round intermediate calculation. Round your final answers to the nearest whole dollar amount.) Period Ending Jan. 1/23 June 30/23 Dec. 31/23 June 30/24 Dec. 31/24 Cash Interest Period Interest Received Income $ 14,700 S 14,700 14,700 14,700 Premium Amort. 14,093 $ 14,073 14,052 14,031 607 627 648 669 Unamortized Premium $ Carrying Value 7,057 $ 6,450 5,823 5,175 4,506 427,057 426,450 425,823 425,175 424,506
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 4E
Related questions
Question
Transcribed Image Text:2. Prepare the entries
answers to the nearest whole dollar amount.)
View transaction list
1
2 Record the purchase of 8,000 shares.
3
4
Record the purchase of a 5-year, 7.0%, $420,000 bond to
be held as a investment.
Record the purchase of investment.
5 Record the receipt of interest on the Jaguar bond.
6
7
Record the collection of dividend income.
Record the sale of investment.
Record the receipt of interest on the Jaguar bond.
8 Record the fair value adiustment.
Note :
journal entry has been entered
Assets
Record entry
Clear entry
X
MONKEY MORTGAGE INC.
Partial Balance Sheet
December 31, 2023
a
Credit
3. Show how the investments would be reported on Monkey's December 31, 2023, balance sheet. (Do not round intermediate
calculations. Round your final answers to the nearest whole dollar amount.)
View general journal
Transcribed Image Text:cam Acc III-June 23 1
O:22:27
C
Mc
Graw
Hill
Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2023, all with intent to hold to maturity:
2023
1 Purchased for $427,057 a 7.0%, $420,000 Jaguar Corp. bond that matures in five years when the market interest rate was
6.6%. There was a $$125 transaction fee included in the above-noted payment amount. Interest is paid semiannually
beginning June 30, 2023. Monkey Mortgage Inc. plans to hold this investment until maturity.
1 Bought 8,000 shares of Mule Corp., paying $34.50 per share. There was a $125 transaction fee included in the above-noted
payment amount.
May
7 Received dividends of $2.90 per share on the Mule Corp. shares.
June 1 Paid $336,000 for 22,000 shares of Zebra common shares. There was a $$125 transaction fee included in the above-noted
payment.
June 30 Received interest on the Jaguar bond..
Jan.
Mar.
Aug. 1 Sold the Mule Corp. shares for $34.75 per share.
Dec. 31 Received interest on the Jaguar bond.
Dec. 31 The fair value of the Zebra shares on this date was $15.00 per share. Assume the fair value of the bonds equalled the
carrying value.
2024
Jan. 14 Sold the Zebra shares for $14.80.
Required:
1. Prepare an amortization schedule for the Jaguar bond showing only 2023 and 2024. (Enter all the amounts as positive values. Do
not round intermediate calculation. Round your final answers to the nearest whole dollar amount.)
Period Ending Cash Interest Period Interest
Received
Income
Jan. 1/23
June 30/23
Dec. 31/23
June 30/24
Dec. 31/24
$
14,700 S
14,700
14,700
14,700
Premium
Amort.
14,093 $
14,073
14,052
14,031
607
627
648
669
Unamortized
Premium
$
Carrying Value
7,057 $
6,450
5,823
5,175
4,506
427,057
426,450
425,823
425,175
424,506
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