Question

Dreyden Investments completed the following investment transactions during 2018: (Click the icon to view the investment transactions.) Read the requirements. Requirement 1. Journalize Dreyden'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 cells blank.) Begin by journalizing Dreyden's investment on January 5, 2018. i More Info Date Accounts and Explanation Debit Credit 2018 Jan. 5 2018 Jan. 5 Purchased Volcano Company's $425,000 bond at face value. Dreyden classified the investment as available-for-sale. The Volcano bond pays interest at the annual rate of 8% on June 30 and December 31 and matures on December 31, 2021. Management's intent is to keep the bonds for several years. Received an interest payment from Volcano. Received an interest payment from Volcano. Adjusted the investment to its current market value of $421,000. Jun. Dec. 30 31 31 Requirements Print Done 1. Journalize Dreyden's investment transactions. Explanations are not required. 2. Prepare a partial balance sheet for Dreyden's Volcano investment as of December 31, 2018. 3. Prepare a comprehensive income statement for Dreyden Investments for year ended December 31, 2018. Assume net income was $280,000. Print Done CheITay Toা ভাভা আy Tus ITTTTPuTuTu usness,

Please answer all parts

Answer 1

Answer Credit Journal Entries Date Accounts Titles & Explanation 5-Jan Available for sale - bond investment Cash (To record purchase of bond investment) Debit 425,000 $ $ 425,000 $ 17,000 30-Jun Cash (425000*8%*6/12) Interest revenue (To record interest received) $ 17,000 $ 17,000 31-Dec Cash (425000*8%*6/12) Interest revenue (To record interest received) $ 17,000 31-Dec Unrealized holding loss - available for sale (425000-421000) $ Fair value adjustment available for sale (To record the investment value adjusted) $ 4,000

2) Partial Balancesheet Dreyden's Investments Balancesheet (partial) December 31, 2018 Long-term assets: Available for sale- bond investment (fair value) Stockholders equity: Comprehensive Income (see income statement) $ 421,000 $ 310,000 3) Comprehensive Income statement Dreyden's Investments Comprehensive Income Statement For the year ended december 31, 2018 Net Income (given) Other comprehensive Income: Unrealized holding loss Interest revenue Comprehensive Income $ 280,000 $ $ $ (4,000) 34,000 310,000