3. The following transactions involving marketable securities investments of KLM Co., occurred during a) On Feb. 15, purchased AAA's 90-day bonds, paying cash of$170,000 (par value $170,000), issue date that pay 9% interest. b) On March 22, purchased 850 shares of BBB Co. at $21 per share, in cash. c) On May 16, collected the principal and 90-days' interest on the bonds purchased in transaction a. d) On Aug. 1, paid $70,000 cash to CCC Co.'s 12% bonds (par value $70,000), issue date July 31, 2021, January 31, 2022. e) On Sept. 1, BBB Co. declared a $1.80 per share cash dividend on shares payable on Oct.31. ) On Oct. 8, sold 425 shares of BBB Co. and collected totally $10,625. 3) On Oct. 31, collected CCC Co.'s 90-days' interest and BBB Co.'s dividends. Required: Prepare the journal entries and post to necessary ledger accounts.
3. The following transactions involving marketable securities investments of KLM Co., occurred during a) On Feb. 15, purchased AAA's 90-day bonds, paying cash of$170,000 (par value $170,000), issue date that pay 9% interest. b) On March 22, purchased 850 shares of BBB Co. at $21 per share, in cash. c) On May 16, collected the principal and 90-days' interest on the bonds purchased in transaction a. d) On Aug. 1, paid $70,000 cash to CCC Co.'s 12% bonds (par value $70,000), issue date July 31, 2021, January 31, 2022. e) On Sept. 1, BBB Co. declared a $1.80 per share cash dividend on shares payable on Oct.31. ) On Oct. 8, sold 425 shares of BBB Co. and collected totally $10,625. 3) On Oct. 31, collected CCC Co.'s 90-days' interest and BBB Co.'s dividends. Required: Prepare the journal entries and post to necessary ledger accounts.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 26P
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning