Question

Journalize the following: On the books & records of Company A On May 2nd, Company A received $100 of interest income from the bank earned in April. If the books are on an accrual basis, record the entry in April and in May when cash was received April Dr. Interest Receivable Cr. Interest Income May Cash Cr. Interest Receivable On the books & records of Company A In January, Company A purchased Investment in XYZ for $100. Payment was made in cash. Dr. Investments Cr. Cash In March, Company A sold Investment in XYZ for $150. Payment was received in cash. Dr. Cash Cr. Investments Cr. Realized Gairn On the books & records of Company A y A paid $1,200 for insurance expense that covers the year 5 /1/12-4/30/13 In May, Compan Record 5/1/12 entry for payment of $1,200 5/31/12 journal entry, if any Dr. Prepaid Expense Cr. Cash Dr. Insurance Expense Cr. Prepaid Expense On the books & records of Company A & B 4. Company A and B are related companies. Company A & are buying investment in XYZ at 50% investment cost was $100 and Company A paid the entire $100. Record the entry for Compa each. The ny A & Company B: Company A: Dr. Receivable from Company B Dr. Investment Cr. Cash Company B: Dr. Investment Cr. Payable to Company A

Answer 1

		DR	CR
1	Interest Receivable	$     100.00
	Interest Income		$     100.00
	Cash	$     100.00
	Interest Receivable		$     100.00
2	Investment	$     100.00
	Cash		$     100.00
	Cash	$     150.00
	Investment		$       50.00
	Realized gain		$     100.00
3	Prepaid expense	$ 1,200.00
	Cash		$ 1,200.00
	Insurance Expense	$     600.00
	Prepaid expense		$     600.00
4	Company A
	Recevable from Company B	$       50.00
	Investment	$       50.00
	Cash		$     100.00
	Company B
	Investment	$       50.00
	Payable to Company A		$       50.00