Question: On February 1 2013 Garzon purchased 6 bonds issued by
On February 1, 2013, Garzon purchased 6% bonds issued by PBS Utilities at a cost of $ 40,000, which is their par value. The bonds pay interest semiannually on July 31 and January 31. For 2013, 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, 2013, Montero Co. paid $ 1,000,000 to acquire 25,000 common shares (10%) of ORD Corp. as a long- term investment. On August 5, 2014, Montero sold one-half of these shares for $ 625,000. What valuation method ...Prepare journal entries to record the following transactions involving the short- term securities investments of Duke Co., all of which occurred during year 2013. a. On March 22, purchased 1,000 shares of RIP Company stock ...Prescrip Co. began operations in 2012. The cost and fair values for its long-term investments portfolio in available-for-sale securities are shown below. Prepare Prescrip’s December 31, 2013, adjusting entry to reflect any ...Rose Company had no short- term investments prior to year 2013. It had the following transactions involving short-term investments in available-for-sale securities during 2013. Apr. 16 Purchased 4,000 shares of Gem Co. stock ...Brinkley Company, which began operations on January 3, 2013, had the following subsequent transactions and events in its long- term investments. 2013 Jan. 5 Brinkley purchased 20,000 shares (25% of total) of Bloch’s common ...
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