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ACCT - Cardinal Paz Corp. carries an account in its general ledger called Investments

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Question;Cardinal Paz Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions.Feb. 1, 2012Sharapova Company common stock, $117 par, 234 shares$37,200April 1U.S. government bonds, 10%, due April 1, 2022, interest payable April 1 and October1, 112 bonds of $1,000 par each112,000July 1McGrath Company 12% bonds, par $53,600, dated March 1, 2012, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 203257,888 (a) Prepare entries necessary to classify the amounts into proper accounts, assuming that all the securities are classified as available?for?sale. Account Titles and ExplanationDebitCredit(b) Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2012, using the straight?line method. (Round answers to 0 decimal places, e.g. $2,500.)Account Titles and ExplanationDebitCredit(c) The fair values of the investments on December 31, 2012, were:Sharapova Company common stock$33,000U.S. government bonds146,870McGrath Company bonds61,510What entry or entries, if any, would you recommend be made? (Round answers to 0 decimal places, e.g. $2,500.)Account Titles and ExplanationDebitCredit(d) The U.S. government bonds were sold on July 1, 2013, for $119,830 plus accrued interest. Give the proper entry.Account Titles and ExplanationDebitCredit

 

Paper#43869 | Written in 18-Jul-2015

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