Question

Patton investments completed the following investment transactions during 2018

Patton Investments completed the following investment transactions during 2018: (Click the loon to view the investment transactions.) Read the requirements Requirement 1. Journalize Patton's investment transactions. Explanations are not required. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required on the first line of the Accounts and Explanation column and leave the remaining calls blank) Begin by journalizing Patton's investment on January 5, 2018 Date Accounts and Explanation Debit Credit 2018 Jan. 5 500,000 Available for Sale Debt Investments Cash 500,000 Purchased investment in bonds. Choose from any list or enter any number in the input fields and then click Check Answer

Answer 1

Part-2 Journal General- Patton'investment
Date	Accoutn Tittle & Explanation	Debit	Credit
5-Jan	Available For Sale Debt Investment	$500,000.00
	Cash		$500,000.00
	TO Record Investment Purchase
30-Jun	Cash	$12,500.00
	Interest Revenue (500000*5%*6/12)		$12,500.00
	TO Record Interest received
31-Dec	Cash	$12,500.00
	Interest Revenue (500000*5%*6/12)		$12,500.00
	TO Record Interest received
31-Dec	Un realised Holding Loss -Available For Sale	$9,500.00
	Fair Value Adjustment Available For Sale (500000-490500)		$9,500.00
	TO Record adjustment in Investment at year end

Part-2 Balance Sheet (Partial)- Patton' Investment
Long term Asset
Available for sale debt investment ( fair value)	$490,500.00
3) Comprehensive Income Statement- Patton'investment
Net Income	$380,000.00
Other Income or Expenses
Unrealised Holding Loss on Investment	-$9,500.00
Interest Revenue (12500*2)	$25,000.00
Comprehensive Income	$395,500.00

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