accounting-Journalize the purchase and sale of the common stock.
Brief Exercise 16-2
On August 1, Shaw Company buys 1,000 shares of Estrada
common stock for $28,260 cash. On December 1, Shaw sells the stock
investments for $34,670 in cash.
Journalize the purchase and sale of the common stock. (Credit account
titles are automatically indented when amount is entered. Do not indent
manually. Record journal entries in the order presented in the problem. If no
entry is required, select "No entry" for the account titles and enter
0 for the amounts.)
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Account Titles and Explanation |
Debit |
Credit |
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Brief Exercise 16-6 Godfrey Corporation holds, as a long-term investment
available-for-sale securities costing $65,900. At December 31, 2014, the fair
value of the securities is $59,492.
Warning
Ok
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Brief Exercise 16-8
Kruger Corporation has the following long-term investments:
(1) Common stock of Eidman Co. (10% ownership) held as available-for-sale
securities, cost $148,360, fair value $155,520. (2) Common stock of Pickerill
Inc. (30% ownership), cost $234,590, equity $298,630.
Prepare the investments section of the balance sheet.
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Kruger Corporation |
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Exercise 16-3
Flynn Company purchased 70 Rinehart
Company 11%, 10-year, $1,900 bonds on January 1, 2014, for
$133,000. The bonds pay interest semiannually on July 1 and January 1. On
January 1, 2015, after receipt of interest, Flynn Company sold 42 of
the bonds for $73,150.
Prepare the journal entries to record the transactions described above. (Round
answers to 0 decimal places, e.g. 15,250. Credit account titles are
automatically indented when amount is entered. Do not indent manually. If no
entry is required, select "No entry" for the account titles and enter
0 for the amounts.)
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Date |
Account Titles and Explanation |
Debit |
Credit |
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Jan. 1, 2014 |
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July 1, 2014 |
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Dec. 31, 2014 |
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Jan. 1, 2015 |
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(To record receipt of interest) |
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Jan. 1, 2015 |
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(To record sale of bonds) |
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Rating:
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Solution: accounting-Journalize the purchase and sale of the common stock.