Refer to the information in RE 15-1. Assume that on February 1, Year 2, the Aggie Corporation

Question:

Refer to the information in RE 15-1. Assume that on February 1, Year 2, the Aggie sold its investment in Bike Company stock for $6,400. Prepare the journal entries of Aggie to record the sale and adjustment of the unrealized gain or loss.
In RE 15-1, On April 30 of Year 1, the Aggie purchased available-for-sale securities. These securities consisted of (a) Smith 10%, five-year bonds with a of $12,000, which were purchased at par plus four months of accrued interest and (b) 300 shares of Bike Company common stock, which were purchased at $20 per share. Prepare the April 30 journal entry to record the purchase of these available-for-sale securities.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...