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Question: hi i need help with these two tables much appreciated...

Question details

Mills Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1, 2018, Mills determined that it should account for the bonds as an available-for-sale investment. The market interest rate (yield) was 4% for bonds of similar risk and maturity. Mills paid $280 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, 2018, was $270 million.

Suppose Moodys bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2, 2019, for $290 million. Prepare the journal entries to record the sale. (If no entry is required for a transaction/event, select No journal entry required in the first account field. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5)) Show less

Journal entry worksheet 3 Record any reclassification adjustment. Note: Enter debits before credits. Event General Journal Debit Credit 2 Reclassification adjustment-oci Fair value adjustment Record entry Clear entry View general journal

Journal entry worksheet 2 Record the sale of the investment by Mills. Note: Enter debits before credits. Event General Journal Debit Credit Cash 290.0 Fair value adjustment Premium on bond investment Investment in bonds 11.6 38 240 Record entry Clear entry View general journal

Reclassification adjustment-oCI Fair value adjustment Cash 290.0 Fair value adjustment Premium on bond investment Investment in bonds 11.6 38 3

Hi I need help with these two tables! Much appreciated

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