Sprague Corporation purchased debt investments for $40,800 on January 1, 2014. On July 1, 2014, Sprague received cash interest of $1,660. Journalize the purchase and the receipt of interest. Assume no interest has been accrued.
Answer to relevant QuestionsOn August 1, Frost Company buys 1,000 shares of ABC common stock for $35,600 cash. On December 1, the stock investments are sold for $38,000 in cash. Journalize the purchase and sale of the common stock.Soils Company had these transactions pertaining to stock investments:Feb. 1 Purchased 1,200 shares of JB common stock (2% of outstanding shares) for $8,400.July 1 Received cash dividends of $2 per share on JB common ...In January 2014, the management of Weast Company concludes that it has sufficient cash to purchase some short-term investments in debt and stock securities. During the year, the following transactions occurred.Feb. 1 ...Stan Koevner believes that the allocation of cost of goods available for sale should be based on the actual physical flow of the goods. Explain to Stan why this may be both impractical and inappropriate.Data for Giffin Company are presented in BE6-2. Compute the cost of the ending inventory under the average-cost method. (Round the cost per unit to three decimal places.)
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