On February 1, 2011, Garzon purchased 6% bonds issued by Integal Utilities at a cost of $80,000, which is their par value. The bonds pay interest semiannually on July 31 and January 31. For 2011, prepare entries to record Garzon’s July 31 receipt of interest and its December 31 year-end interest accrual.
Answer to relevant QuestionsOn May 20, 2011, Chiu Co. paid $1,500,000 to acquire 25,000 common shares (10%) of BBE Corp. as a long-term investment. On August 5, 2012, Chiu sold one-half of these shares for $937,500. What valuation method should be used ...Prepare journal entries to record the following transactions involving the short-term securities investments of Bolton Co., all of which occurred during year 2011. a. On February 15, paid $170,000 cash to purchase ACC’s ...Information regarding Seaton Company’s individual investments in securities during its calendar-year 2009, along with the December 31, 2009, fair values, follows. a. Investment in Beeman Company bonds: $443,150 cost, ...Elevant Co.’s long-term available-for-sale portfolio at December 31, 2010, consists of the following. Elevant enters into the following long-term investment transactions during year 2011. Jan. 29 Sold 3,500 shares of ...While reviewing the March 31, 2010, balance sheet of Success Systems, Adriana Lopez notes that the business has built a large cash balance of $77,845. Its most recent bank money market statement shows that the funds are ...
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