Description of this paper

Homework - Chapter 15

Description

solution


Question

QS 15-9 Debt securities transactions L.O. P2;On February 1, 2011, Charo Mendez purchased 6% bonds issued by CR Utilities at a cost of $30,000, which is their par value. The bonds pay interest semiannually on July 31 and January 31. For 2011, prepare entries to record Mendez?s July 31 receipt of interest and its December 31 year-end interest accrual. (Do not round your intermediate calculations. Omit the "$" sign in your response.);Date General Journal Debit Credi;July 31;Dec. 31;Exercise 15-2 Accounting for short-term trading securities L.O. P1;Prepare journal entries to record the following transactions involving the short-term securities investments of Smart Co., all of which occurred during year 2011.;a.;On March 22, purchased 770 shares of FIX Company stock at $11 per share plus a $340 brokerage fee. These shares are categorized as trading securities. (Omit the "$" sign in your response.);Date General Journal Debit Credit;Mar. 22;b.;On September 1, received a $2 per share cash dividend on the FIX Company stock purchased in transaction a. (Omit the "$" sign in your response.);Date General Journal Debit Credit;Sept. 1;c.;On October 8, sold 385 shares of FIX Co. stock for $21 per share, less a $330 brokerage fee. (Do not round your intermediate calculations. Omit the "$" sign in your response.);Date General Journal Debit Credit;Oct. 8;Serial Problem Business Solutions L.O. P1;While reviewing the March 31, 2012, balance sheet of Business Solutions, Santana Rey notes that the business has built a large cash balance of $68,070. Its most recent bank money market statement shows that the funds are earning an annualized return of 0.50%. S. Rey decides to make several investments with the desire to earn a higher return on the idle cash balance. Accordingly, in April 2012, Business Solutions makes the following investments in trading securities;April 16 Purchases 460 shares of Johnson & Johnson stock at $45 per share plus $400 commission.;April 30 Purchases 330 shares of Starbucks Corporation at $26 per share plus $170 commission.;On June 30, 2012, the per share market price (fair value) of the Johnson & Johnson shares is $50 and the Starbucks shares is $23.;Required;1.;Prepare journal entries to record the April purchases of trading securities by Business Solutions. (Omit the "$" sign in your response.);Date General Journal Debit Credit;April 16, 2012;April 30, 2012;2.;On June 30, 2012, prepare the adjusting entry to record any necessary fair value adjustment to its portfolio of trading securities. (Omit the "$" sign in your response.);Date General Journal Debit Credit;June 30, 2012;Problem 15-5A Accounting for long-term investments in securities, with and without significant influence L.O. P3, P4 [The following information applies to the questions displayed below.];Pillar Steel Co., which began operations on January 4, 2011, had the following subsequent transactions and events in its long-term investments.;2011;Jan. 5 Pillar purchased 60,000 shares (25% of total) of Kildaire?s common stock for $1,847,200.;Oct. 23 Kildaire declared and paid a cash dividend of $3.40 per share.;Dec. 31;Kildaire?s net income for 2011 is $1,166,000, and the fair value of its stock at December 31 is $35.00 per share.;2012;Oct. 15 Kildaire declared and paid a cash dividend of $2.90 per share.;Dec. 31;Kildaire?s net income for 2012 is $1,477,200, and the fair value of its stock at December 31 is $38.00 per share.;2013;Jan. 2 Pillar sold all of its investment in Kildaire for $2,045,100 cash. rev: 03_05_2014_QC_46153 references;6. value;2.00 points;Problem 15-5A Part 2

 

Paper#74266 | Written in 18-Jul-2015

Price : $20
SiteLock