5. Maxim Corporation had the following transactions pertaining to debt investments. Jan. 1 Purchased 80, 8%,...
5. Maxim Corporation had the following transactions pertaining to debt investments.
Jan. 1 Purchased 80, 8%, $1,000 Woodrow Company bonds for $80,000.
July 1 Sold 20 Woodrow Company bonds for $21,500.
Instructions
Prepare journal entries for the purchase and sale of the Woodrow Company bonds.
Homework Answers
| particulars | debit | credit |
|
Investment in Woodrow Company bonds account.... dr To cash account |
80000 | |
| 80 000 | ||
|
cash account dr To interest on bonds |
3200 | |
| 3200 | ||
|
cash account dr To Investment in Woodrow Company bonds account To gain on sale of bonds |
21500 | |
| 20000 | ||
| 1500 |
note;
- it is assumed that the interest was paid to the company in every 6 month
- the gain on bonds will be transferred to profit and loss account
- the gain is calculated by subtracting the total cost of investment from the sale value
- the cost of sold of investment is 2000( (80000/80)*20 )
Add Answer to:
5. Maxim Corporation had the following transactions pertaining
to debt investments.
Jan. 1
Purchased 80, 8%,...
Whitmore Corporation had the following transactions pertaining to debt and stock investment transactions during cal...
Whitmore Corporation had the following transactions pertaining to debt and stock investment transactions during calendar year 2020. Purchased 50, 10%, $1,000 Lawton Company bonds for $50,000. The bonds pay interest semi-annually on Jan 1 and July 1. Jan 1 Purchased 700 shares of Shaw Company stock for $9,415. Mar 1 Received semi-annual interest on the Lawton Company bonds. July 1 Sold 20 Lawton Company bonds for $19,000. July 1 Received cash dividends of $0.50 per share on the Shaw Company...
Glaser Company had the following transactions pertaining to debt securities held as a short-term investment: 1-Jan...
Glaser Company had the following transactions pertaining to debt securities held as a short-term investment: 1-Jan Purchased 50, 8%, $1,000 Adler Company bonds for $50,000 cash plus brokerage fees of $800. Interest is payable semi-annually on July 1 and January 1. 1-Jul Received semi-annual interest on Adler Company bonds 31-Dec Sold 30 Adler Company bonds for $32,000 less $500 brokerage fee. Prepare the journal entries for Glaser Co. Stone Company had the following transactions pertaining to short-term investments in equity...
Exercise 16-02 Sheridan Corporation had the following transactions pertaining to debt investments. 1. Purchased 80 8%,...
Exercise 16-02 Sheridan Corporation had the following transactions pertaining to debt investments. 1. Purchased 80 8%, $1,050 Leeds Co. bonds for $84,000 cash. Interest is payable annually on January 1, 2020. 2. Accrued interest on Leeds Co. bonds on December 31, 2020. 3. Received interest on Leeds Co. bonds on January 1, 2021. 4. Sold 30 Leeds Co. bonds for $69,300 on January 1, 2021. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not...
Jenek Corporation had the following transactions pertaining to debt investments 1. Purchased 50 9%, $1,600 Leeds...
Jenek Corporation had the following transactions pertaining to debt investments 1. Purchased 50 9%, $1,600 Leeds Co. bonds for $80,000 cash. Interest is payable annually on January 1, 2017. 2. Accrued interest on Leeds Co. bonds on December 31, 2017. Received interest on Leeds Co. bonds on January 1, 2018 3. Sold 30 Leeds Co. bonds for $54,400 on January 1, 2018. 4. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually....
Jenek Corporation had the following transactions pertaining to debt investments. 1. Purchased 25 9%, $2,000...
Jenek Corporation had the following transactions pertaining to
debt investments.
1. Purchased 25 9%, $2,000 Leeds
Co. bonds for $50,000 cash. Interest is payable annually on January
1, 2017.
2. Accrued interest on Leeds Co.
bonds on December 31, 2017.
3. Received interest on Leeds Co.
bonds on January 1, 2018.
4. Sold 15 Leeds Co. bonds for
$34,000 on January 1, 2018.
Journalize the transactions. (Credit account titles are automatically indented when amount is entered....
Jenek Corporation had the following transactions pertaining to debt investments. 1. Purchased 60 8%, $1,850 Leeds...
Jenek Corporation had the following transactions pertaining to
debt investments.
1.
Purchased 60 8%, $1,850 Leeds Co. bonds for $111,000 cash.
Interest is payable annually on January 1, 2017.
2.
Accrued interest on Leeds Co. bonds on December 31, 2017.
3.
Received interest on Leeds Co. bonds on January 1, 2018.
4.
Sold 36 Leeds Co. bonds for $75,480 on January 1, 2018.
Journalize the transactions. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually....
Exercise 12-2 Jenek Corporation had the following transactions pertaining to debt investments. 1. Purchased 60 9%,...
Exercise 12-2 Jenek Corporation had the following transactions pertaining to debt investments. 1. Purchased 60 9%, $1,200 Leeds Co. bonds for $72,000 cash on January 1, 2017. Interest is payable annually on January 1. 2. Accrued interest on Leeds Co. bonds on December 31, 2017. 3. Received interest on Leeds Co. bonds on January 1, 2018. 4. Sold 36 Leeds Co. bonds for $47,520 on January 1, 2018. Journalize the transactions. (Credit account titles are automatically indented when amount is...
Nosker Inc. had the following transactions pertaining to investments in common stock. Jan. 1 Purchased 4,800...
Nosker Inc. had the following transactions pertaining to
investments in common stock.
Jan.
1
Purchased 4,800 shares of Escalante Corporation common stock
(7%) for $291,840 cash.
July
1
Received a cash dividend of $4 per share.
Dec.
1
Sold 960 shares of Escalante Corporation common stock for
$61,440 cash.
Dec.
31
Received a cash dividend of $4 per share.
Journalize the transactions. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually. Record journal entries in...
Exercise 12-2 Jenek Corporation had the following transactions pertaining to debt investments 1. Purchased 46 9%,...
Exercise 12-2 Jenek Corporation had the following transactions pertaining to debt investments 1. Purchased 46 9%, $1,300 Leeds Ce bonds for $59,800 cash on January 1, 2017. Interest is payable annually on January 1. 2. Accrued Interest on Leeds Co. bonds on December 31, 2017 3. Received interest on Leeds Co, bonds on January 1, 2018 4. Sold 28 Leeds Co. bonds for $39,468 on January 1, 2018 Journalire the transactions. (Credit account titles are automatically Indented when amount is...
Part 2 - Problem: (10 Points) Pattison Inc. had the following transactions pertaining to investments in common stoc...
Part 2 - Problem: (10 Points) Pattison Inc. had the following transactions pertaining to investments in common stock. Jan. 1 Purchased 4,000 shares of Freeze Corporation common stock (5%) for S182,100 cash. July 1 Received a cash dividend of $3 per share. Dec. 1 Sold 600 shares of Freeze Corporation common stock for $31.200 cash. Dec. 31 Received a cash dividend of $3 per share. Instructions Please prepare the four journal entries required for the above transactions 1) DR. CR....
Whitmore Corporation had the following transactions pertaining to debt and stock investment transactions during calendar year 2020. Purchased 50, 10%, $1,000 Lawton Company bonds for $50,000. The bonds pay interest semi-annually on Jan 1 and July 1. Jan 1 Purchased 700 shares of Shaw Company stock for $9,415. Mar 1 Received semi-annual interest on the Lawton Company bonds. July 1 Sold 20 Lawton Company bonds for $19,000. July 1 Received cash dividends of $0.50 per share on the Shaw Company...
Exercise 16-02 Sheridan Corporation had the following transactions pertaining to debt investments. 1. Purchased 80 8%, $1,050 Leeds Co. bonds for $84,000 cash. Interest is payable annually on January 1, 2020. 2. Accrued interest on Leeds Co. bonds on December 31, 2020. 3. Received interest on Leeds Co. bonds on January 1, 2021. 4. Sold 30 Leeds Co. bonds for $69,300 on January 1, 2021. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not...
Jenek Corporation had the following transactions pertaining to debt investments 1. Purchased 50 9%, $1,600 Leeds Co. bonds for $80,000 cash. Interest is payable annually on January 1, 2017. 2. Accrued interest on Leeds Co. bonds on December 31, 2017. Received interest on Leeds Co. bonds on January 1, 2018 3. Sold 30 Leeds Co. bonds for $54,400 on January 1, 2018. 4. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually....
Jenek Corporation had the following transactions pertaining to
debt investments.
1. Purchased 25 9%, $2,000 Leeds
Co. bonds for $50,000 cash. Interest is payable annually on January
1, 2017.
2. Accrued interest on Leeds Co.
bonds on December 31, 2017.
3. Received interest on Leeds Co.
bonds on January 1, 2018.
4. Sold 15 Leeds Co. bonds for
$34,000 on January 1, 2018.
Journalize the transactions. (Credit account titles are automatically indented when amount is entered....
Jenek Corporation had the following transactions pertaining to
debt investments.
1.
Purchased 60 8%, $1,850 Leeds Co. bonds for $111,000 cash.
Interest is payable annually on January 1, 2017.
2.
Accrued interest on Leeds Co. bonds on December 31, 2017.
3.
Received interest on Leeds Co. bonds on January 1, 2018.
4.
Sold 36 Leeds Co. bonds for $75,480 on January 1, 2018.
Journalize the transactions. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually....
Exercise 12-2 Jenek Corporation had the following transactions pertaining to debt investments. 1. Purchased 60 9%, $1,200 Leeds Co. bonds for $72,000 cash on January 1, 2017. Interest is payable annually on January 1. 2. Accrued interest on Leeds Co. bonds on December 31, 2017. 3. Received interest on Leeds Co. bonds on January 1, 2018. 4. Sold 36 Leeds Co. bonds for $47,520 on January 1, 2018. Journalize the transactions. (Credit account titles are automatically indented when amount is...
Nosker Inc. had the following transactions pertaining to
investments in common stock.
Jan.
1
Purchased 4,800 shares of Escalante Corporation common stock
(7%) for $291,840 cash.
July
1
Received a cash dividend of $4 per share.
Dec.
1
Sold 960 shares of Escalante Corporation common stock for
$61,440 cash.
Dec.
31
Received a cash dividend of $4 per share.
Journalize the transactions. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually. Record journal entries in...
Exercise 12-2 Jenek Corporation had the following transactions pertaining to debt investments 1. Purchased 46 9%, $1,300 Leeds Ce bonds for $59,800 cash on January 1, 2017. Interest is payable annually on January 1. 2. Accrued Interest on Leeds Co. bonds on December 31, 2017 3. Received interest on Leeds Co, bonds on January 1, 2018 4. Sold 28 Leeds Co. bonds for $39,468 on January 1, 2018 Journalire the transactions. (Credit account titles are automatically Indented when amount is...
Part 2 - Problem: (10 Points) Pattison Inc. had the following transactions pertaining to investments in common stock. Jan. 1 Purchased 4,000 shares of Freeze Corporation common stock (5%) for S182,100 cash. July 1 Received a cash dividend of $3 per share. Dec. 1 Sold 600 shares of Freeze Corporation common stock for $31.200 cash. Dec. 31 Received a cash dividend of $3 per share. Instructions Please prepare the four journal entries required for the above transactions 1) DR. CR....
Most questions answered within 3 hours.
-
2) Write a C++ program that uses a class called “Degree” to
obtain the trigonometric
values...
asked 44 minutes ago -
1. In eukaryotic cells the genomes of
&
asked 43 minutes ago -
The standard enthalpy of propanol (C3H7OH) is -303.0 kJ/mol.
Compute both of the
gross and net...
asked 43 minutes ago -
Why PWM using H-bridge for control motor speed is more power
effiecient than the linear amplifier...
asked 58 minutes ago -
In 1999, Carly Fiorina famously said,"I hope that we are at a
point that everyone is...
asked 1 hour ago -
Individuals in a species of moth vary in wing color from white to
black, but all...
asked 1 hour ago -
The following standards for variable manufacturing overhead have
been established for a company that makes only...
asked 1 hour ago -
The United States government wanted to determine what proportion
of Americans approve of the current president,...
asked 1 hour ago -
2-N stone is dropped from the top of a cliff. The stone hits the
ground 3...
asked 1 hour ago -
Vitamins participate in metabolic reactions in their coenzyme
forms . Match the following reactions to the respective...
asked 1 hour ago -
We have developed a new mobile device and wish to gain insight
into the price that...
asked 2 hours ago -
12.8 ml of a solution is run into an empty flask, from a buret.
The mass...
asked 1 hour ago