Determine the unrealized holding gain or loss on the note

Reference no: EM13128157

Shonen Knife Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 11% and has a carrying value of $16,000. At year-end, Shonen Knife's borrowing rate has declined; the fair value of the note payable is now $17,500.

(a) Determine the unrealized holding gain or loss on the note.

Unrealized Holding Gain or Loss $

(b) Prepare the entry to record any unrealized holding gain or loss. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Reference no: EM13128157

Questions Cloud

Find mean-standard deviation time customer on second floor : An elevator has a uniform distribution ranging from 0 to 4 minutes. Find the mean and standard deviation of x, the time a customer on the second floor waits for an elevator.

Illustrate what is the cost or benefit of zippy adding : The cost of adding this new feature is $26,000 and Zippy expects to sell 1,600 units over the next year. Illustrate what is the cost or benefit of Zippy adding the feature to the product?

Statements concerning interim financial reports : Which of the following statements concerning interim financial reports is incorrect?

How many grams of water are needed to react : Calcium carbide, CaC2, reacts with water to form acetylene. CaC2(s) + 2 H2O(l) C2H2(g) + Ca(OH)2(s) How many grams of water are needed to react with 473 g of calcium carbide?

Determine the unrealized holding gain or loss on the note : Shonen Knife Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 11% and has a carrying value of $16,000. At year-end, Shonen Knife's borrowing rate has declined; the fair ..

Difference between institutional-individual discrimination : Explain the difference between Institutional and Individual discrimination and give an example of each.

Reterive important information about chair conformation : Important information about Chair Conformation, Circle the least stable conformation as well.

In how many ways three selected vials have hairline crack : If you randomly select 3 vials from the shipment, in how many ways can at least one of the 3 selected vials have a hairline crack if the order of selection does not matter?

Illustrate what is jerold federal income tax filing status : Travis is a full-time student, while Macy earns $7,000 each year from a part-time job. Travis and Macy do not file jointly during either year. Illustrate what is Jerold’s Federal income tax filing status for 2010 and 2011 if all parties reside in:

User Account

All Pages