Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
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Insta Corp. invests in shares of other companies in 2015 for generating profit as shown below;
Market Value Dec. 31
Security
Purchase
date
2016
Date sold
Selling price
Cost
2015
DT
June 2015
48.000TL
54.000TL T 60.800TL
Feb. 2017
59.600TL
EA
June 2015
116.000TL
104.800TL
March
114.000TL
2016
a. Classify each investment as trading or available for sale.
DT:
EA:
b. Prepare the necessary journal entries for Insta Corp. (Hint: entries for purchase of securities, adjusting
entries at Dec.31 2015 and 2016, entries for sale of securities).
Question Content Area
On April 1, 2017 the Reba Company purchased 10%, $800,000 bonds of the Trading Up Company at par plus accrued interest. These bonds were classified as an investment in trading securities. The bonds pay interest on June 30 and December 31 each year. The entry by Reba on April 1, 2017, would include a
debit to Investment in Trading Securities of $820,000
debit to Interest Expense of $20,000
credit to Interest Income of $20,000
credit to Cash of $820,000
cam Acc III-June 23 1
O:22:27
C
Mc
Graw
Hill
Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2023, all with intent to hold to maturity:
2023
1 Purchased for $427,057 a 7.0%, $420,000 Jaguar Corp. bond that matures in five years when the market interest rate was
6.6%. There was a $$125 transaction fee included in the above-noted payment amount. Interest is paid semiannually
beginning June 30, 2023. Monkey Mortgage Inc. plans to hold this investment until maturity.
1 Bought 8,000 shares of Mule Corp., paying $34.50 per share. There was a $125 transaction fee included in the above-noted
payment amount.
May
7 Received dividends of $2.90 per share on the Mule Corp. shares.
June 1 Paid $336,000 for 22,000 shares of Zebra common shares. There was a $$125 transaction fee included in the above-noted
payment.
June 30 Received interest on the Jaguar bond..
Jan.
Mar.
Aug. 1 Sold the Mule Corp. shares for $34.75 per share.
Dec. 31 Received interest on the…
Chapter C Solutions
Connect Access Card for Financial Accounting: Information and Decisions
Ch. C - Under what two conditions should investments be...Ch. C - Prob. 2DQCh. C - Prob. 3DQCh. C - Identify the three classes of debt investments and...Ch. C - Prob. 5DQCh. C - Prob. 6DQCh. C - Prob. 7DQCh. C - Prob. 8DQCh. C - Prob. 9DQCh. C - Prob. 10DQ
Ch. C - Prob. 11DQCh. C - Prob. 12DQCh. C - Prob. 13DQCh. C - Prob. 14DQCh. C - Prob. 15DQCh. C - Prob. 16DQCh. C - Prob. 17DQCh. C - Which of the following statements a through g are...Ch. C - Prob. 2QSCh. C - Prob. 3QSCh. C - Prob. 4QSCh. C - Prob. 5QSCh. C - Prob. 6QSCh. C - Prob. 7QSCh. C - Prob. 8QSCh. C - Prob. 9QSCh. C - Prob. 10QSCh. C - Prob. 11QSCh. C - Prob. 12QSCh. C - Prob. 13QSCh. C - Prob. 14QSCh. C - Prob. 15QSCh. C - Prob. 16QSCh. C - Prob. 17QSCh. C - Prob. 1ECh. C - Prob. 2ECh. C - Prob. 3ECh. C - Prob. 4ECh. C - Prob. 5ECh. C - Prob. 6ECh. C - Prob. 7ECh. C - Prob. 8ECh. C - Prob. 9ECh. C - Prob. 10ECh. C - Prob. 12ECh. C - Prob. 13ECh. C - Prob. 14ECh. C - Prob. 15ECh. C - Prob. 16ECh. C - Prob. 2PSACh. C - Prob. 6PSACh. C - Prob. 2PSBCh. C - Prob. 3PSBCh. C - Prob. 5PSBCh. C - Prob. 6PSBCh. C - Prob. CSPCh. C - Prob. 4BTNCh. C - Prob. 9BTN
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