1. Precision Castparts builds sophisticated machinery for the aerospace industry and frequently invests excess cash in...

Apr. 30^th: Purchased $16 million of 5% Marmon Corp. bonds at face value.

June 30^th: Received the $400,000 semiannual interest payment on the Marmon bonds.

Oct. 1^st: Purchased $10 million of 4% General Rebonds at face value. These bonds pay interest on July 1^st and January 1^st of each year.

Dec. 1^st: Sold the Marmon bonds for $16.5 million.

Dec. 31^st: Prepare any necessary adjusting entries. The fair value of General Rebonds was $10.2 million. Remember to accrue interest.

Prepare the appropriate journal entry for each transaction above, as well as any adjusting journal entries necessary at year-end.
Indicate amounts that Precision will show on its 2019 Income Statement, Statement of Comprehensive Income, and Balance Sheet
1. Income Statement
2. Statement of Comprehensive Income
3. Balance Sheet

2. Use the same data as Problem 1, but now assume the bonds are classified as Trading Securities.
1. Prepare the appropriate journal entry for each transaction above, as well as any adjusting journal entries necessary at year-end

Indicate amounts that Precision will show on its 2019 Income Statement, Statement of Comprehensive Income, and Balance Sheet
1. Income Statement

Statement of Comprehensive Income

Balance Sheet

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