Answer | |||
Requirement 1 | |||
Date | Accounts | Debit | Credit |
2021 | |||
Dec-17 | Investment in grocers supply bonds | $ 6,07,500 | |
cash | $ 6,07,500 | ||
(To record Investment in grocers ) | |||
Dec-28 | Cash | $ 3,400 | |
Interest revenue | $ 3,400 | ||
( To record Interest revenue) | |||
Dec-31 | Fair value adjustment | $ 67,500 | |
Unrealised holding gain-NI (5000-607500/135)*135 | $ 67,500 | ||
(To record Unrealised holding gain) | |||
2022 | |||
Jan-05 | Unrealised holding Loss-NI | $ 33,750 | |
Fair value adjustment(675000-641250) | $ 33,750 | ||
(To record Unrealised holding loss) | |||
Jan-05 | Cash | $ 6,41,250 | |
Fair value adjustment (641250-607500) | $ 33,750 | ||
Investment in grocers supply bonds | $ 6,07,500 | ||
(To record sold of grocers bond) |
Requirement 2 | |||
Balance sheet (short term investment) | |||
Trading securities | $ 6,75,000 | ||
Income statement | |||
Interest revenue | $ 3,400 | ||
Unrealised holding gain | $ 67,500 |
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Check my work Exercise 12-7 (Algo) Various transactions relating to trading securities [LO12-1, 12-3] Rantzow-Lear Company...
Exercise 12-7 Various transactions relating to trading securities (LO12-1, 12-3] Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in price. The company's fiscal year ends on December 31. The following selected transactions relating to Rantzow-Lear's trading account occurred during December 2018 and the first week of 2019. eBook 2018 Dec. 17 Purchased 100 Grocers' Supply Corporation bonds at par for $350,000. 28 Received interest of $2,800 from the Grocers' Supply Corporation bonds. 31 Recorded...
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Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in price, and holds these investments in its trading portfolio. The company's fiscal year ends on December 31. The following selected transactions relating to Rantzow-Lear's trading account occurred during December 2021 and the first week of 2022. 2021 Dec. 17 Purchased 100 Grocers' Supply Corporation bonds at par for $350,000. 28 Received interest of $2,000 from the Grocers' Supply Corporation bonds. 31 Recorded any necessary adjusting...
I will give thumbs up for correct answers! Thank you! Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in price, and holds these investments in its trading portfolio. The company's fiscal year ends on December 31. The following selected transactions relating to Rantzow-Lear's trading account occurred during December 2021 and the first week of 2022. 2021 Dec. 17 Purchased 200 Grocers' Supply Corporation bonds at par for $500,000. 28 Received interest of $6,000 from...
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