Question

The following Crown Point Corporation transactions are for bonds that were purchased as a held for trading investment for the year ended December 31, 2018: Feb. 1 Purchased $250,000 of Leslye Corporation 3% bonds at 105 (this means 105% of maturity value). Interest is received semi-annually on August 1 and February 1. The bonds mature on February 1, 2020. Aug. 1 Received interest on Leslye bonds. 2 Sold $100,000 of the Leslye bonds at 102. Dec. 31 Accrued interest on the remaining bonds. 31 The fair value of the remaining bonds was 100 on this date.

Answer 1

Held for trading investment is having a debit balance of $1,50,000.

Cash Ak Date Postales Amant Date Particules Ang gt | To interest Revence At 3,750 Feb 1/By held for troding bust and To Held for teeding Aug? | brestments Ale '1109000 3 Dec To balalance bold 11,56,750 Amant | 2,62,500 12,62,500 262500! Held for toding bestants Ale Amant Date Particulars tebit ' To cash AG 262,500 Dak Particules Amant Ag and By cash Ale 1102000 | Aug 21 By Realized loss on held for today 3,000 By unrealized loss on muss. 7500. held for toding husts are | by balonce old 1,50,000 1 262,500 262, 500

Held for trading investment is an asset so it will have the debit balance with the positive sign.

Where cash is also an asset so it should have debit balance of positive sign. But in the given problem we getting the cash with the negative balance .

Your answer was also correct but just put the negative sign Infront of cash balance as there was negative cash.

Thank you.