Following is information for Marcel Ltes investments held for trading. Marcel is a public company and has

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Following is information for Marcel Ltée’s investments held for trading. Marcel is a public company and has a December 31 year end.

2021

Sept. 28 Purchased 3,500 shares of Cygman Limited for $40 per share.
Oct. 1 Purchased $300,000 of Rauk Inc. 4% bonds at face value. The bonds pay interest semiannually on April 1 and October 1.

Nov. 12 Sold 1,900 Cygman shares for $42 per share.

Dec. 1 Received $1.50 per share dividend from Cygman.

31 Cygman shares were trading at $38 per share and the Rauk bonds were trading at 101.

2022

Mar. 31 Sold the remaining Cygman shares for $40 per share.

Apr. 1 Received interest on the Rauk bonds.

Oct. 1 Received interest on the Rauk bonds.

Dec. 31 Rauk bonds were trading at 102.


Instructions

Record the above transactions, including any required adjusting entries, for 2021 and 2022.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Accounting Principles Volume 2

ISBN: 978-1119502555

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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