Mills Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1, 2018. Company management has positive intent and ability to hold the bonds until maturity. 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.Required:1. & 2. Prepare the journal entry to record Mills’ investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate.3. At what amount will Mills report its investment in the December 31, 2018, balance sheet?

Answers

Answer 1

Answer and Explanation:

The journal entries and the amount reported on the balance sheet is as follows:

1&2 The journal entries are as follows:

Investment in Bonds $240 million

Premium on Bond Investment $40 million  

               To Cash $280 million

(Being investments in Bonds is recorded)  

Cash (3% × $240 million) $7.2 million

         To Premium on Bonds A/c (Bal Figure) $1.6  million

         To Interest Revenue A/c (2% × $280 million) $5.6 million

(Being Interest is recorded)  

3. Now the amount reported on the balance sheet is

Investment in Bonds $240 million

Original Premium $40  million

Less: Amortization -$1.6 million

Amount to be reported in Balance sheet $278.4 million


Related Questions

1. Which of the following statements is false?

Answers

Answer:

D

Explanation:

Can I get marked Brainliest

Evan and Rosa have two young children. Evan has a full-time job as a truck driver, and Rosa is currently applying for jobs. What insurance may be best for them right now? (5 points)

Life insurance and travel insurance

Unemployment insurance and life insurance

Personal injury insurance and Medicare

Worker's comp insurance and Medicaid

Answers

Answer:

Unemployment insurance and life insurance

Explanation:

Insurance is needed in-order to prevent any unforseen circumstances or experiences which maybe injurious to the individual in question. This insurance would help to offset any expenses encountered when the unexpected events happened.

In the case of Evan and Rosa, Evan would need to take a life insurance since he is working as a truck driver (a dangerous work prone to accident) while the wife, Rosa would take an unemployment insurance since she is temporary unemployed at the moment.

Answer:

The correct answer is B

Explanation: i took the test and i got it right! have a great day!

What is the best option for Carmina as she purchases her dream home to enjoy for many years? (5 points)


Applying for a low-interest loan


Applying for a direct subsidized loan


Applying for an ARM mortgage


Applying for a fixed rate mortgage

Answers

Answer:

Applying for a fixed rate mortgage

Explanation:

A mortgage is a credit facility used to finance the acquisition of properties and homes. A mortgage allows one to borrow has a huge amount of money and spreads repayments over many years.

A fixed-rate mortgage charges a fixed interest rate throughout the life of the mortgage, unlike the ARM mortgage. In the fixed-rate mortgage, the monthly repayments are predictable and constant, which makes planning easy. Since Carmina plans to stay in her dream home for many years, a fixed-rate mortgage is ideal.

Answer:

a fixed rate mortgage

bc is simply a loan in which the interest rate and monthly payment amount do not change over the life of the loan.

Michael is a manager for a high-tech company. He is analyzing the results of his teams, and the stats startle him. The performance numbers are not where they were projected, even though quality and speed were up to par. What could describe the performance concerns Michael is having?

Answers

Answer:

Performance ambiguity

Explanation:

Performance ambiguity refers to the failure to understand why performance is failing to meet projections.

Since we are told his team on average did well on quality and speed, it becomes troubling or an issue of concern for the Manager when he cannot understand why the performance numbers are not where they were projected.

Name 3 target market (customer group) PLEASE HELP

Answers

Answer:

walmart, publix, and aldes

Explanation:

Explanation:

These include gender, age, income levels, race, education, religion, marital status, and geographic location. Consumers that fall into these groups tend to value the same products and services, which is why narrowing down these segments is one of the most important factors to determine target markets

How is it different to approach someone with good news versus bad news? Answer in a few short sentences.

Answers

Answer:

you would have different tones each time you approached them.

Explanation:

with bad news you would kind of be emotional and concerning but if you had good news you would be joyful or excited

Although all new accounts must be approved by a designated supervisor before any trading activity may take place, there is one type of account that must be approved by a specially qualified supervisor. That would be A) a discretionary account B) an IRA C) an options account D) a margin account

Answers

Answer:

C)

Explanation:

an options account this can also do

Which type of partnership should Adam and Donna choose?
Adam and Donna have started their own business of making customized cell phone cases. However, Adam is also involved in another business and is not be able to dedicate time to the new business. He is willing to fund the business but is not able to help Donna in the daily operations.
Donna suggests that they follow the ____ partnership business structure.​

Answers

Answer:

The suggestion from Donna would be Limited Partnership business structure.

Explanation:

Limited Partnership is the type of partnership where the business entities are authorised by the state. In this partnership, there is atleast one general partner who is involved in the day-to-day running of the business while the other partner(s) provides money but do not contribute towards the day-to-day running.

This is the most common for partners who only want financial returns in a business rather than being bugged down with the debts and liabilities associated with the business.

Which descriptions offer examples of Management workers? Check all that apply. Roger sells a company’s product to customers. Arthur supervises a small department of Administrative workers. Bridget documents a company’s financial activities and creates reports. Whitney oversees others, makes decisions, and runs a company.

Answers

Answer:

The answer is B&D

Answer:

b & d

Explanation: got it wrong the first time and this is the right answer lol

Suppose in the U.S., market demand for bottled water is low enough that one firm could supply all of the demand. Two firms enter the market and agree to charge a price above the marginal cost of production. We can expect that

Answers

Answer:

The Correct Answer is C

This agreement will collapse

Explanation:

This contract will fall, So, The U.S. economy's largeness performs it flexibly. It is pretty not possible that even these incidents could cause a fall. The Federal Reserve's contractionary monetary mechanisms may tame hyperinflation. The Federal Deposit Insurance Corporation protects banks, Homeland Security functions tackle a cyber warning. If not, the economy can regularly respond in mockery of what it performed before the internet.

how does deoxygenated blood travel to the lung​

Answers

Answer: In the pulmonary loop, deoxygenated blood exits the right ventricle of the heart and passes through the pulmonary trunk. The pulmonary trunk splits into the right and left pulmonary arteries. These arteries transport the deoxygenated blood to arterioles and capillary beds in the lungs.

Hope this helped :)

What type of spending is happening when the military buys news tanks and airplanes?
a. Consumer
b. Investment
c. Government

Answers

A i think she is right

Answer:

Consumer (mostly)

Explanation:

After buying weapons from defense contractors, the money could be used in many ways. Most of it is used to produce more weaponry for future purchases. Some might be put towards researching new technology that could make the vehicles much more advanced. Some is probably saved, to help pay employees.

What are references?

Answers

Answer:

the action of mentioning or alluding to something

Explanation:

Choose one current event. Describe the event and discuss the economic implications of this event. What economic effects might this have at the individual and societal levels?

Answers

corona virus. the corona virus is a virus that makes us buy masks, but it also is making us stay home and some of us have to buy computers and stuff to work from home and some of us cannot go to work because of the spread of the deadly virus. individually it will cost us money if we need to buy a computer/laptop but it will also cost money because everyone needs food and water at their house so they will create a stock, so they will spend a major of their money on food and water. on a society level there will be a lot of people buying everything at once and then there will be nothing to buy or no one to buy anything so we won’t have any ups or downs in the economy but we will not be spending money as a society so we will just keep it to ourselves.

The Corona virus event that has people buying masks, and everyone staying home requiring some to buy computers, creating stock with food and water. In society people will level for a lot of people to buy everything, then there would be nothing left to buy.

Which of the following entities writes states' tax laws?

The president

Congress

Each state

The IRS

Answers

Answer:

the answer is Congress.

Your building plan for your restaurant includes 4 bathrooms - 2 women’s and 2 men’s. The city inspector informs you , that you must have at least 400 square feet per bathroom. If your building is a total of 8,000 square feet, how many square feet are left for the development of other , non bathroom areas?

A) 4,000 square feet
B) 4,800 square feet
C) 6,400 square feet
D) 8,000 square feet

Answers

Answer:

C) 6,400 square feet

Explanation:

Each bathroom requires at least 400 square feet. There are four bathrooms.

In total, the four bathrooms will need 400 square feet multiplied by four.

= 400 square feet  x 4

=1600 square feet

The space left for other developments

=total space - bathroom space

=8000 square feet - 1600 square feet

=6400 square feet

as part of a team you are assigned to create appointment to report one of your asses to put people together and another team sent them to you you already have the title page summary and introduction in the place next you should put the A.table of contents B.appendices C.main body D.conclusion and recommendation​

Answers

Answer: C.

Explanation:


A new manufacturing technology makes it easier to make the
product and causes a shift in the supply curve. What is the new
equilibrium point after implementing the new technology? (Hint:
Determine which direction a easier production shifts the supply
curve and use that direction to pick the resulting equilibrium
point.)
O $6 and 20,000
O $4 and 30,000
O $6 and 30,000
O $4 and 20,000

Answers

The answer is c because 6 can go in to 30000 evenly

The indirect and direct methods Multiple Choice Are two allowable methods to present operating activities in the statement of cash flows. Affect the presentations of operating, investing, and financing activities. Arrive at different amounts for net cash flows from operating activities. Are used by companies about equally in actual practice.

Answers

Answer:

Are two allowable methods to present operating activities in the statement of cash flows.

Explanation:

As we know that the cash flow statement is a statement that shows the cash inflows and cash outflow of the organization

For this statements, there are two methods to determine

The one is direct method

And, the other one is indirect method

Both are acceptable only the calculation made in operating activities is change and for rest two activities i.e. investing and financing would be the same under these two methods

Therefore the first option is correct

The geometric average annual return for a large capitalization stock portfolio is 10% for ten

years and 6% per year for the next five years. The geometric average annual return for the entire

15 year period is ________.

A) 9.08%

B) 8.65%

C) 8.22%

D) 9.52%

Answers

Answer:

B) 8.65%

Explanation:

Geometric Average Return = [(1 + r1) * (1 + r2) * - - - - - * (1 + rN)]1/N - 1

Geometric Average Return = [(1 + 0.10)^10 * (1 + 0.06)^5]^1/15 - 1

Geometric Average Return = [1.10^10 * 1.06^5]^1/15 - 1

Geometric Average Return = [2.59374*1.33823]^1/15 - 1

Geometric Average Return = (3.471021)^1/15 - 1

Geometric Average Return = 1.08650188155 - 1

Geometric Average Return = 0.08650188155

Geometric Average Return = 8.65%

Correct verbal communication during an interview includes _____.
a.
a pleasant tone of voice
b.
positive vocabulary
c.
correct grammar and word choices
d.
all of the above

Answers

Answer: All of the above

Explanation: During an interview, it is important to take into account a series of elements such as: having a pleasant tone of voice, a positive vocabulary, and a good command of grammar. The characteristics mentioned above allow communication to take place in an adequate way, allowing the interviewee to understand what is being asked of him and respond appropriately.

Answer:

all of the above

Explanation:

Brad, a retail store manager, notices that one of his employees, Eric, is sleeping in the break room during his shift. Brad needs to give Eric feedback that this conduct is not allowed. You advise Brad that the feedback would be best delivered to Eric:

Answers

Answer: Quickly as Eric's behavior was observed.

Explanation:

One of the major ethics in a work place is to avoid sleep is during your shift, this puts extra work on your colleagues or puts the work or operation at risk when you're the only one carrying out the job. The feedback that Brad would have to Eric has to be done as quickly as possible so that Eric can work on it and desist such attitude.

Accountants must have strong ___ to visualize, communicate, and solve
both complex and uncomplicated problems.
A. analytical skills
B. organizational skills
C. math skills
D. communication skills

Answers

Answer:

Analytical skills

Explanation:

Accountants must have strong analytical skills to visualize, communicate, and solve both complex and uncomplicated problems. Thus, option A is correct.

Who is Accountants?

An accountant is a person who manages the financial situation of the monetary transaction of a firm business or individual.

He maintains the money category, as well as the debit and credit whatever happens in the account, as it is necessary for a person to calculate in future the taxes to be given on the income which is earned.

An accountant must have strong analytical skills, as he or she needs to see through the concern analysis and information. This also me that she needs to be from as there is various reconciliation that might come with it and need to be adjusted. Therefore, option A is the correct option.

Learn more about Accountants, here:

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9. With respect to Egor's land, Fig has an easement, Gabe has a profit, and Huck has a license. A right to possess the land is owned by

Answers

Answer:

Egor.

Explanation:

According to the Landlord-Tenant Law, the right to possess the land is owned by Egor in the given situation.

In the given scenario, Egor has a land, which he has given to Fig as an easement. An easement can be defined as a nonpossessory right to the holder of the property to earn interest on the land, originally owned by someone else. Gabe is earning profit on it and Huck has a license. Regardless of this, Egor still owns the property and has right to possess the land.

Therefore, Egor is the correct answer.


Refer to the graph. Which area indicates a surplus?

(A)
(B)
(C)
(D)

Answers

Answer:

D

Explanation:

what type of tenancy is formed by a written agreement that creates a non-freehold estate in real property providing occupancy of the property for a specified time period?

Answers

Answer:

(c) Tenancy for years

Explanation:

These are the options for the question

(a) Tenancy at will

(b) Tenancy at sufferance

(c) Tenancy for years

(d) Tenancy in common

Tenancy-for-years provide

agreement for a fixed period of time, whereby there is a room for tenant occupying a property legally after their lease might have expired, but this is before the landlord issues a notice vacation for them. It should be noted that Tenancy for years is formed by a written agreement that creates a non-freehold estate in real property providing occupancy of the property for a specified time period?

Question 2
A style of writing in which the main point is stated early in the message.

Answers

Answer:

this could be a hard lead if this has to do with writing an article of some sort Explanation:

Question 10 of 20
A college student wants to buy a new guitar. Unfortunately, she doesn't have
enough money to pay for it all at once. She'd like to pay for it in small
installments over a few months.
Which type of loan would most help solve her problem?
A. A credit card
B. A mortgage
C. A line of credit
O D. A student loan
SUBMIT
A

Answers

Answer:

A student loan I guess is the answer

joye owns a shoe store in a neighborhood with other shoe stores. Demand for the products he sells is probably ​

Answers

Answer:

Demand for products sold at a store in a neighborhood with other stores is probably elastic

Explanation:

A demand is considered as 'Elastic' if a change in price of the product would strongly affect the quantity of the demand.

Competitors who offer similar products than your organization tend to reduce the amount of demand that come to your store. Existence of competitors give the consumers the options to choose and move around in order to seek the best offers that they can.

As a result, the shoe stores in Joey's neighborhood will have to constantly adjust their price in order to make their products seems appealing compared to the rest of the competitors. This make the demand in Joye's store keep fluctuating depending on the performance of other competitors.

Answer:      Elastic

Explanation:

I took the test

A common advantage of a promotion is that
a. You will have longer hours
b. Your relationships with your peers will change
c. You will receive better pay
d. You may have to learn to do new tasks

Answers

c. you will receive better pay

The common advantage of a promotion is that option c. You will receive better pay.

What is promotion?

Promotion means that the employer getting the promotion to the higher level where he or she gets the high remuneration as compared to the earlier remuneration.

Therefore based on this, we can say that the option c is correct.

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