(Answered) Question - in 2012 abc corp bought the mortgages on two

Accounting

Question - In 2012, ABC Corp. bought the mortgages on two properties. The company receives monthly payments that include principal and interest. One mortgage will be repaid in full in 14 years and the other in 18 years. ABC Corp. bought the mortgages with the intention of selling them at a profit when the financial conditions improve. However, both mortgagees are struggling financially, and the underlying value of the properties has declined. In December 2014, ABC Corp had the value of the mortgages appraised, and the appraisal showed a $38,500 impairment on both of the mortgages. Interest and principal have been properly recorded for this investment.
ABC Corp. had an option to buy the mortgage on a third property. It had paid $5,000 for this option three years ago. The option expired in 2014.

The Trial Balance has the following account Balances:

Investment in mortgage option (at FVOCI) Debit 5,000

Investment in mortgages (at FVOCI) Debit 512,000

Mortgage interest income Credit 57,980

Required - What are the required journal entries for 2014.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92858539
Price:- $20

Verified Expert

Priced at $40 Now at $20, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Questions -q1 donald corp reported the following on its

Questions - Q1. Donald Corp. Reported the following on its comparative income statement (in millions): 2017 2016 2015 Revenue $728 $675 $500 Cost of goods sold 312 258 220 Prepare horizontal analysis of revenues and cost ...

Question - at the beginning of 2016 pioneer products

Question - At the beginning of 2016, Pioneer Products' ownership interest in the common stock of LLB Co. increased to the point that it became appropriate to begin using the equity method of accounting for the investment ...

Question - 1 what is gross profit margin and what is net

Question - 1. What is gross profit margin and what is net profit margin? What are in the between the two? Give a few examples to explain the items between these margins, and show how to analyze these items for improvemen ...

Question - during fy 2016 alpha company sold 500 units for

Question - During FY 2016, Alpha Company sold 500 units for total sales of $20,000. Manufacturing costs consisted of direct labor $2,500, direct materials $4,400, variable factory overhead $1,100, and fixed factory overh ...

Question - one december a 101-year-old woman died and left

Question - One December, a 101-year-old woman died and left $25 million to a university. This fortune was accumulated through shrewd and patient investment of a $4000 nest egg over the course of 55 years. In turning $400 ...

Question - assume andersons general store bought on credit

Question - Assume Andersons general store bought on credit, a truckload of merchandise from American wholesaling costing $24,500. If Anderson paid National Trucking $800 cash for transportation, immediately returned good ...

Question - cypress ltd inc purchased a 7-year asset in july

Question - Cypress LTD Inc. purchased a 7-year asset in July for $200,000. More than 40% of the total additions for that year were placed in service during the fourth quarter. Neither the straight-line method nor the 150 ...

Question 1 use the information to complete the 1120s tax

Question: 1. Use the information to complete the 1120S Tax Form. Once you have completed the form, prepare a 250-500-word summary in which you evaluate how various organizational legal forms (LLC, sole proprietorship, C- ...

Question - an individual received 70 capital interest in a

Question - An individual received 70% capital interest in a general partnership by contributing investment land purchased 10 years ago for 40000 value 60000 and a personal non business truck purchased 9 months ago for 12 ...

Question - f l wright architects incorporated as licensed

Question - F. L. Wright Architects incorporated as licensed architects on September 1, 2018. During the first month of the operation of the business, these events and transactions occurred: Sept. 1 Stockholders invested ...

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