On July 1, 2016, Wolipack Corporation purchased securities which it intends to buy and sell frequently. These securities consisted of (a) Todd Corporation 10%, 5-ycar bonds with a face value of $20,000 which were purchased for $18,500 and (b) 300 shares of Cornett Company common stock which were purchased at $40 per share. Prepare the July 1 journal entry to record the purchase of these trading securities.
Answer to relevant QuestionsRefer to the information in RE13-3. Assume that on December 31, 2016, Wolipack received interest on the Todd Corporation bonds as well as a $3 dividend per share interest on the Cornett Company stock. Prepare the December 31 ...Refer to the information in RE13-7. Assume that on December 31, 2016, the investment in Smith Corporation bonds has a market value of $12,300 and the investment in Bike Company stock has a market value of $5,500. Prepare the ...On January 1, 2016, Mark Corporation purchased bonds with a face value of $500,000 for $475,413.60. The bonds are due December 31, 2018, carry' a 10% stated rate, and were purchased to yield 12%. Interest is payable ...How are each of the three categories of minority passive investments reported on the balance sheet? Use the information in RE14-6, except assume that Temple issues its bonds on March 1 at par, plus accrued interest. Prepare the journal entries to record the issuance of the bonds (adjust interest expense for the accrued ...
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