A company bought the available for sale investments during 2017 (no investments as of 12/31/16) -...

A company bought the available for sale investments during 2017 (no investments as of 12/31/16)

- they bought 200 shares of apple stock for $40,000 on 2/1/17

- they bought 100 treasury bonds at $1,000 par each with an 4% interest rate at 4/2/2017 (semi annual on 4/1 and 10/1)

- $50,000 of company B 9% bonds due 3/1/37, interest payable on 3/1. our company paid 50,000 plus accrued interest for these bonds on 7/1/17

Required:

1- prepare journal entries for 2017 for all purchases on the investments

2- prepare all the appropriate adjusting entries as of 12/31/17 for the investments, Fair Market Value as of 12/31/17

Company A C-Stock $42,000

Treasury bonds $104,000

Company B Bonds $51,000

3- The Treasury bonds were sold on 7/1/18 for $103,000 plus accrued interest . prepare the journal entry.

Solutions

Expert Solution

ekkarill92 answered 2 months ago

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