The Adam Corporation had the following transactions during the year: Jan. 15 Purchased 1,500 shares of LMN stock at S10 per share. Purchased 3,000 shares of KJL stock at $20 per share. Received dividends of SI per share of LMN stock. Purchased $20,000 of XYZ bonds for $20,000. Interest of 9% is paid on April 15 and October 15. Sold 1,000 shares of KJL stock for $22,000. Received a $2 dividend per share for KJL stock. Received interest on XYZ bond. Sold the bonds for $21,000. Sold 500 shares of LMN stock for S5,000. On this day, LMN stock is selling for S19 per share and KJL stock is selling for S12 per share. Record th reflect the fair market value of the stock. Feb 15 Mar 15 Apr 15 Aug 15 Sep 15 Oct 15 Oct 15 Nov 15 Dec 31 Instructions: a. Record the transactions for the year in general journal format. b. Show how the stock investment would appear on the balance sheet on December 31.
The Adam Corporation had the following transactions during the year: Jan. 15 Purchased 1,500 shares of LMN stock at S10 per share. Purchased 3,000 shares of KJL stock at $20 per share. Received dividends of SI per share of LMN stock. Purchased $20,000 of XYZ bonds for $20,000. Interest of 9% is paid on April 15 and October 15. Sold 1,000 shares of KJL stock for $22,000. Received a $2 dividend per share for KJL stock. Received interest on XYZ bond. Sold the bonds for $21,000. Sold 500 shares of LMN stock for S5,000. On this day, LMN stock is selling for S19 per share and KJL stock is selling for S12 per share. Record th reflect the fair market value of the stock. Feb 15 Mar 15 Apr 15 Aug 15 Sep 15 Oct 15 Oct 15 Nov 15 Dec 31 Instructions: a. Record the transactions for the year in general journal format. b. Show how the stock investment would appear on the balance sheet on December 31.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.13MCP
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 2 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
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning