Question

W stock On April 30, 2016, Aggie Corporation purchased available-for-sale securities. These securities com (a) Smith Corporation 10%, 5-year bonds with a face value of $12.000 which were purchased at par months of accrued interest and (b) 300 shares of Bike Company common stock which were purchase lue of $12,000 which were purchased at par plus four share. Prepare the April 30 journal entry to record the purchase of these available-for-sale securities. intent on the Smith Corporation

Answer 1

Agner Investment Investment is the conversion of liquid asset in the investment. An organliqtion_make investments for the plagose galo in sale or equa_99 Interest income. Investment secure the short term Iliqud usset of the organisation All organisation can make Duesbonent lin bonds common stock prefenent stock etc. __ so the situation quen 19 qyestion_Aggie Corporation mode investments Lie the books and comment stock on April 30 Joying) Entry is as follows: . Agoje Corporation Journal Entry Cresit ($) ( 300 shares) | Pate A particulars Debit ($) Ap2.30 | Joynal_Enbry to record investment in security 10% Jovestment in Bonds (Smith Coup-2 - Or. 12000 | Accrved Interest_Ala On 400 Investment in common Stock Coike 6.) (*602 oret Gooo - To Cash Ale (oeing investment made in the bonds 940 common stock and accrued interest of bonds for 4 months hque been recorded) 18400 Total 18400. 18400 Aconved Interest - X (4 months / 12 months) $ 12000 X 10% 1200 X 13 $ 400