Assuming richman co has a portfolio of available-for-sale, Ask an Expert

Accounting

Richman Co. purchased $300,000 of 8%, 5-year bonds from Carlin Inc on January 1, 2010, with interest payable on July 1 and January 1. The bonds sold for $312,474 at an effective interest rate of 7%. Using the effective interest method, Richman Co decreased the Available-for-Sale Debt Securities account for the Carlin In bonds on July 1, 2010 and December 31, 2010 by the amortized premiums of $1062 and $1098 respectively.

At February 1, 2011, Richman Co sold the Carlin bonds for $309,000. After accruing interest, the carrying value of the Carlin bonds on February 1, 2011 was $310,125.

Assuming Richman Co has a portfolio of Available-for-Sale Debt Securities, what shoud Richman Co report as gain (or loss) on the bonds?

a) $0

b) $($6,561)

c) ($8,811)

d) ($1,125)

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M969937

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - the company uses pre-numbered purchase orders

Question - The company uses pre-numbered purchase orders. Only the Purchase Manager is able to use and authorize the purchase orders. Once the purchase order has been sent to a supplier, a copy is given to the accounting ...

Question - x companys profit equation next year is expected

Question - X Company's profit equation next year is expected to be 0.47R-$12,900, where R is total revenue. Assuming a tax rate of 36%, what must next year's revenue be in order for X Company to earn after-tax profits of ...

Fundamentals of value creation in business assignment -

FUNDAMENTALS OF VALUE CREATION IN BUSINESS ASSIGNMENT - ACCOUNTING Requirements - 1. The following is a list of companies from the latest ASX. These companies are carefully chosen to suit this project and the learning ou ...

Question - post the following transactions into the

Question - Post the following transactions into the appropriate T accounts. Transactions: 1. Purchased office supplies for $6,000 in cash. 2. Delivered monthly statements; collected fee income of $52,000. 3. Paid the cur ...

Question - what is the role of the external auditor play in

Question - What is the role of the external auditor play in the legal actions of clients? How about the internal auditor? What are three characteristics/objectives of a good investigation report?

Question - if a company purchases land for 1000000 paying

Question - If a company purchases land for $1,000,000, paying $400,000 cash and borrowing the remainder with a long term note payable. Please give explanation for understanding on how this transaction be reported on a st ...

Question - weston company has these data at december 31

Question - Weston Company has these data at December 31, 2017, the end of its first year of operations. Securities Cost Fair Value Trading $110,000 $122,000 Available-for-sale100,000 96,000 The available-for-sale securit ...

Assignment - asset misappropriation and corporate

Assignment - Asset Misappropriation and Corporate Governance For this assignment, use the Internet or Strayer databases to research and identify an organization that was a victim of asset misappropriation. Write a five t ...

Question - alpha corp was organized on january 2 2018

Question - Alpha Corp., was organized on January 2, 2018. During the first year of operation, Alpha issued 100,000 shares of $1 par value common stock at a price of $50 cash per share. On December 31, 2018, Alpha reporte ...

Question - loan amortization bankrate has a financial

Question - Loan Amortization. Bankrate, has a financial calculator that will prepare an amortization table based on your inputs. First, find the APR quoted on the website for a 30-year fixed rate mortgage. You want to bu ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert