The journal entries are as follows:
Date | Account Titles and Explanation | Debit(in millions) | Credit(in millions) |
October 18, 2021 | Investment in Millwork Ventures Preferred Shares A/c Dr. | $58 | |
To Cash A/c | $58 | ||
(To record purchase of 2 million preferred shares of Millwork Ventures Company) | |||
October 31, 2021 | Cash A/c Dr. | $1.5 | |
To Investment Revenue A/c | $1.5 | ||
(To record received semiannual interest of Kansas Abstractors bonds) | |||
November 1, 2021 | Investment in Holistic Entertainment Bonds A/c. Dr. | $18 | |
To Cash A/c | $18 | ||
(To record Purchased 10% bonds of Holistic Entertainment Enterprises) | |||
November 1, 2021 | Cash A/c Dr. | $28 | |
Loss on Sale of Investments ($30 - $28) A/c Dr. | $2 | ||
To Investment in Kansas Abstractors Bonds A/c | $30 | ||
(To record Sale the Kansas Abstractors bonds) | |||
December 1, 2021 | Investment in Household Plastics Bonds A/c Dr. | $60 | |
To Cash A/c | $60 | ||
(To record Purchased 12% bonds of Household Plastics Corporation ) | |||
December 20, 2021 | Investment in U.S. Treasury Bonds A/c Dr. | $5.6 | |
To Cash A/c | $5.6 | ||
(To record Purchased U. S. Treasury bonds) | |||
December 21, 2021 | Investment in NXS Common Shares A/c. Dr. | $44 | |
To Cash A/c | $44 | ||
(To record Purchase of 4 million common shares of NXS Corporation) | |||
December 23, 2021 | Cash A/c. Dr. | $5.7 | |
To Investment in U.S. Treasury Bonds A/c | $5.6 | ||
To Gain on Sale of Investments A/c ($5.7 - $5.6) | $0.1 | ||
( To record sale of the Treasury bonds ) | |||
December 29, 2021 | Cash A/c Dr. | $3 | |
To Investment Revenue A/c | $3 | ||
(To record cash dividends received from the MillworkVentures Company preferred shares) | |||
December 31,2021 | Investment Revenue Receivable - Holistic Entertainment A/c Dr. | $0.3 | |
Investment Revenue Receivable - Household Plastics A/c Dr. | $0.6 | ||
To Investment Revenue A/c(Note -1) | $0.6 | ||
(To record accrued interest on bonds) | |||
Net Unrealized Holding Gains and Losses - OCI A/c (2,000,000 x $27.50 - 58,000,000) | $3 | ||
To Fair Value Adjustment A/c | $3 | ||
(To record the entry to adjust to fair value for the Millwork Ventures preferred stock) | |||
Fair Value Adjustment A/c | $2 | ||
To Net Unrealized Holding Gains and Losses - I/S A/c | $2 | ||
Note :- NXS shares (4,000,000 x $11.50) - $44,000,000 = $2,000,000 | |||
(To record Record the entry to adjust to fair value for the NXS Corporation common shares) | |||
Closing Entry: | |||
Net Unrealized Holding Gains and Losses - I/S A/c. Dr.(NXS share value) | $2 | ||
Investment Revenue A/c Dr. ($3 + $1.5 + $0.9) | $5.4 | ||
Gain on Sale of Investments A/c Dr. (Treasury Bonds) | $0.1 | ||
To Loss on Sale of Investments A/c (Kansas Abstractors) | $2 | ||
To Income Summary A/c | $5.5 | ||
January 7,2022 |
Cash |
$43 |
|
To Loss on sale of investment A/c | $1 | ||
To Investment in NXS common shares A/c | $44 | ||
(To record sale of NXS Corporation common shares) |
Note 1 :-
Now we will calculated the accrued Interest
Holistic Entertainment = ($18,000,000 x 10%) x2/12 = $300,000
Holistic Entertainment bonds are purchase at $18 on Nov 1.That a reason here accrued interest is calculated for 2 months.
Household Plastic = ($60,000,000 x 12%) x 1/12 = $600,000
Household Plastic Bond Interest is calculated for 1 month as Bond are purchase on December 1.
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division....
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's Investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $45 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated's trading...
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $45 million of 10 bonds of Kansas Abstractors, Inc. purchased on May 1, 2021 at face value and held in Amalgamated's trading...
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $30 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated's trading...
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $40 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated's trading...
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $60 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated's trading...
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated’s investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $55 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated’s trading...
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated’s investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $50 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated’s trading...
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated’s investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $45 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated’s trading...
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated’s investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $55 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated’s trading...
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $30 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated's trading...