2. In January 2018, the management of ABC Company concludes that it has sufficient cash to purchase some short-term investments in bonds and shares. During the year, the following transactions occurred. Feb. 1 Purchased 500 shares of DET shares for 45.000 TL. Mar. 1 Purchased 600 shares of STL shares for 30,000TL. Mar.25 June 1 July 1 Aug. 1 Sept. 1 Oct. 1 Nov. 1 Required: DET declared 0.90TL dividends per share payable on September 1. Purchased 40 1.000TL 9% CTN bonds for 60,000TL. Interest is payable semiannually on June 1 and November 1. Sold 200 shares of DET and collected totally 19.880TL. Received a 1.5TL per share cash dividend on the STL shares. Received cash dividend on DET shares. Sold 20 CTN bonds and collected totally 25.750TL. Received the semiannual interest on CTN bonds. Journalize and post the transactions.

2. In January 2018, the management of ABC Company concludes that it has sufficient cash to purchase some short-term investments in bonds and shares. During the year, the following transactions occurred. Feb. 1 Purchased 500 shares of DET shares for 45.000 TL. Mar. 1 Purchased 600 shares of STL shares for 30,000TL. Mar.25 June 1 July 1 Aug. 1 Sept. 1 Oct. 1 Nov. 1 Required: DET declared 0.90TL dividends per share payable on September 1. Purchased 40 1.000TL 9% CTN bonds for 60,000TL. Interest is payable semiannually on June 1 and November 1. Sold 200 shares of DET and collected totally 19.880TL. Received a 1.5TL per share cash dividend on the STL shares. Received cash dividend on DET shares. Sold 20 CTN bonds and collected totally 25.750TL. Received the semiannual interest on CTN bonds. Journalize and post the transactions.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 3PB

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2. In January 2018, the management of ABC Company concludes that it has sufficient cash to purchase some short-term investments in bonds and shares. During the year, the following transactions occurred. Feb. 1 Purchased 500 shares of DET shares for 45,000TL. Mar. 1 Purchased 600 shares of STL shares for 30,000TL. Mar.25 DET declared 0.90TL dividends per share payable on September 1. June 1 Purchased 40 1,000TL 9% CTN bonds for 60,000TL. Interest is payable semiannually on June 1 and November 1. July 1 Sold 200 shares of DET and collected totally 19,880TL. Aug. 1 Received a 1.5TL per share cash dividend on the STL shares. Sept. 1 Received cash dividend on DET shares. Oct. 1 Sold 20 CTN bonds and collected totally 25,750TL. Nov. 1 Received the semiannual interest on CTN bonds. Required: Journalize and post the transactions.
In January 2022, the management of Handley Corporation, a publicly-traded company, decides that it has sufficient cash to purchase some debt and equity securities to be held as trading investments. During the year, the following transactions occurred. Feb. 1 Purchased 1,100 shares of NJF common shares for $48,400. Mar. 1 Purchased 500 shares of SEK common shares for $20,000. Apr. 1 Purchased 73 $1,000, 8% CRT bonds for $74,200. Interest is receivable semi-annually on April 1 and October 1. July 1 Received a cash dividend of $0.60 per share on the NJF common shares. Aug. 1 Sold 180 shares of NJF common shares at $39.00 per share. Sept. 1 Received $2 per share cash dividend on the SEK common shares. Oct. 1 Received the semi-annual interest on the CRT bonds. Oct. 1 Sold the CRT bonds for $79,240. At December 31, Handley’s fiscal year end, the fair values of the NJF and SEK common shares were $38 and $29 per share, respectively. Record the above…
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Inc. identified the following selected transactions occurring during the year ended December 31, 2018: a. issued 850 shares of $4 par common stock for cash of $25,000. b. issued 4,800 shares of $4 par common stock for building with fair market value of $98,000. c. purchased new truck with fair market value of $31,000. financed it 100% with long-term note. d. retired short-term notes $27,000 by issuing 2,7000 shares of $4 par common stock. e. paid long-term notes of $10,000 to Bank of Tallahassee. issued new long-term note of $20,000 to Bank of Trust. Identify any non-cash transactions that occurred during the year, and show how they would be reported in the non-cash investing and financing activities section of the statement of cash flows. Inc Statement of Cash Flows (partial) Year Ended December 31, 2018 Non-cash Investing and Financial Activities Total non-cash Investing and Financing Activities
How would I Debit and Credit for the transactions shown? Oct. 1 Purchased $90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of $375. The bonds are classified as a held-to-maturity long-term investment. 7 Sold, at $38 per share, 2,600 shares of treasury common stock purchased on Jun. 8. 14 Received a dividend of $0.60 per share from the Solstice Corp. investment on Jun. 1. 29 Sold 1,000 shares of Solstice Corp. at $45, including commission. 31 Recorded the payment of semiannual interest on the bonds issued on May 1 and the amortization of the premium for six months. The amortization is determined using the straight-line method. Dec. 31 Accrued interest for three months on the Dream Inc. bonds purchased on Oct. 1. 31 Pinkberry Co. recorded total earnings of $240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. 31 The fair value for Solstice…
a. Prepare journal entries b. Assuming that the profit for the year amounted to P450,000, prepare the shareholders' equity section of the statement of financial position as at Dec. 31, 2018. Gloria Detoya Corporation was authorized to issue 900,000 shares of 5%, $100 par value preference shares and 1.5 million shares of no- par, $5 stated value ordinary shares. The ff. transactions occurred during 2018: Feb. 2) 24,000 ordinary shares were sold to a group of investors at $24 per share. Feb 15) 5,500 preference share were issued to an individual in exchange for a parcel of land to be held for future development. The land has a fair market value of $795,000. The preference shares was not actively traded. Apr. 30) 2,500 ordinary shares were issued to a lawyer in exchange for services rendered in forming the corporation. The stock was currently trading at $31 a share. All parties agreed that this represented the value of the lawyer's services. Nov. 20) Additionally 7,000 ordinary…
Way Inc. obtained significant influence by buying 40% of Sonic Inc's 4,800 outstanding shares of common stock at a cost of $8 per share on January 1, 2025. On December 31, Sonic declared and paid a $2,900 cash dividend and reported net income of $18,900 for the year. Post all transactions and determine the account balance of the Stock Investments account. Jan. 1 Dec. 31 Dec. 31 Bal. Stock Investments 15,360 Dec. 31 Revenue from Stock Investments Dec. 31
During the year ended December 31, 2024, Rakai Corporation, a public company, had the following transactions related to investments held for trading purposes: Feb. 1 Purchased 575 IBF common shares for $25,300. Mar. 1 Purchased 1,500 Raimundo common shares for $48,000. Apr. 1 Purchased $200,000 of CRT 3% bonds at par. Interest is payable semi-annually on April 1 and October 1. July 1 Received a cash dividend of $1.50 per share on the IBF common shares. Aug. 1 Sold 250 IBF common shares at 548 per share. Oct. 1 Received the semi-annual interest on the CRT bonds. 1 Sold the CRT bonds for $205,000. Dec. 31 The fair values of the IBF and Raimundo common shares were $50 and $28 per share, respectively. Instructions Record the transactions and any required year-end adjusting entries. Show the financial statement presentation of the investments and any related accounts in the financial statements for the year ended December 31, 2024.
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