Use the Following Information for Questions

question 41

Short Answer

Use the following information for questions
On January 1, 2022, Burkett Corporation purchased, as a long-term investment, a $25,000, 5% bond, for $21,595.At this time, the market rate of interest was approximately 7%.The bond pays interest on January 1 and July 1.On December 31, 2022, the fair value of the bonds was $23,950.
-What is the entry (if any) to record the fair value adjustment on December 31, 2022? Assume the adjusting entry for the interest accrual has already been recorded.

Understand how to properly list Plant, Property, and Equipment in financial statements.

Learn about the structure and components of a classified balance sheet.

Understand the preparation and significance of comprehensive financial statements (Balance Sheet, Income Statement, Statement of Owner’s Equity).

Understand the structure and function of the female reproductive system.

---

Definitions:

Ordinary General Annuity

An annuity where payments are dispensed at the conclusion of each period, including monthly or yearly intervals.

Present Value

The today's worth of a forthcoming sum of money or succession of cash flows, given a specific rate of return.

Compounded Semi-annually

Interest on a loan or investment calculated twice a year, added to the principal sum, and earning interest thereafter.

Mortgage Loan

A loan secured by real property through the use of a mortgage note, typically used to purchase property.