Gard Company completes the following transactions related to its short-term debt investments. Required 1. Prepare journal entries
Question:
Gard Company completes the following transactions related to its short-term debt investments.
Required
1. Prepare journal entries for the transactions.
2. Prepare a year-end adjusting journal entry as of December 31 if the fair values of the debt securities held by Gard are \(\$ 9,600\) for FedEx and \(\$ 22,000\) for Ajay. (This year is the first year Gard Company acquired short-term debt investments.)
Transcribed Image Text:
May 8 Purchased FedEx notes as a short-term investment in available-for-sale securities for $12,975. Sep. 2 Oct. 2 Sold part of its investment in FedEx notes for $4,475, which had cost $4,325. Purchased Ajay bonds for $25,600 as a short-term investment in available-for-sale securities.
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