During 2011 and 2012, Foley Co. made the following journal entries to account for transactions involving trading

Question:

During 2011 and 2012, Foley Co. made the following journal entries to account for transactions involving trading securities:

The beginning balance in Market Adjustment'Trading Securities was a $900 credit. There were no other entries in 2011.

There were no other entries in 2012.

Instructions:
For each incorrect entry, give the entry that should have been made. Assume the revenue approach is used. Ignore any premium or discount amortization on U.S. Treasurybonds.

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Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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Question Posted: Jan 29, 2012 01:37 AM

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During 2011 and 2012, Foley Co. made the following journal entries to account for transactions involving trading

Question:

Step by Step Answer:

a 2011 Nov 1 Investment in Trading SecuritiesTreasury Bonds 51500 Interest Revenue 1167 Cash 52667 50000 1025 250 51500 50000 007 412 1167 b Dec 31 Un...View the full answer

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