Swartz Inc. enters into the following transactions during 2016: July 1: Paid $10,000 to acquire on the open market $10,000 face value of Gallatin bonds. The bonds have a stated annual interest rate of 6% with interest paid semiannually on June 30 and December 31. The bonds mature in 5 ½ years. Oct. 23: Purchased 600 shares of Eagle Rock common stock at $20 per share. Nov. 21: Purchased 200 shares of Montana preferred stock at $30 per share. Dec. 10: Received dividends of $1.50 per share on the Eagle Rock stock and $2.00 per share on Montana stock. Dec. 28: Sold 400 shares of Eagle Rock common stock at $25 per share. Dec. 31: Received interest from the Gallatin bonds. Prepare all necessary journal entries on Swartz’s records to account for its investments during 2016.
Problem 7-5: Swartz Inc. enters into the following transactions during 2016:
July 1: Paid $10,000 to acquire on the open market $10,000 face
The bonds have a stated annual interest rate of 6% with interest paid semiannually on June 30 and December 31. The bonds mature in 5 ½ years.
Oct. 23: Purchased 600 shares of Eagle Rock common stock at $20 per share.
Nov. 21: Purchased 200 shares of Montana
Dec. 10: Received dividends of $1.50 per share on the Eagle Rock stock and $2.00 per share on Montana stock.
Dec. 28: Sold 400 shares of Eagle Rock common stock at $25 per share.
Dec. 31: Received interest from the Gallatin bonds.
Prepare all necessary
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