The following data pertain to the securities of Linford Company during 2018, the company's first year...

  

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The following data pertain to the securities of Linford Company during 2018, the company's first year of operations: Purchased 400 shares of Corporation A stock at $40 per share plus a commission of $200. The security was only for trading purpose. Purchased $6,000 of Corporation B bonds. The purpose of the bond investment was trading. Received a cash dividend of $0.50 per share on the Corporation A stock. d. Sold 100 shares of Corporation A stock for $46 per share. Received interest of $240 on the Corporation B bonds. Purchased 50 shares of Corporation C stock for $3,500. Linford made an irrevocable election to a. b. с. e. f. measure the equity investment as fair value through other comprehensive income. Received interest of $240 on the Corporation B bonds. 8. h. Sold 150 shares of Corporation A stock for $28 Received å cash dividend of $1.40 per share on the Corporation C stock. per share. i. Interest receivable at year-end on the Corporation B bonds amounts to $60. j. Required: Classify the securities invested in Corporations A, B, and C, and prepare journal entries to record the precéding transactions., Post the entries to T-accounts, and determine the amount of each of the following for the year: Dividend revenue 1. 2. Interest revenue 3. Net gain or loss from selling securities The following data pertain to the securities of Linford Company during 2018, the company's first year of operations: Purchased 400 shares of Corporation A stock at $40 per share plus a commission of $200. The security was only for trading purpose. Purchased $6,000 of Corporation B bonds. The purpose of the bond investment was trading. Received a cash dividend of $0.50 per share on the Corporation A stock. d. Sold 100 shares of Corporation A stock for $46 per share. Received interest of $240 on the Corporation B bonds. Purchased 50 shares of Corporation C stock for $3,500. Linford made an irrevocable election to a. b. с. e. f. measure the equity investment as fair value through other comprehensive income. Received interest of $240 on the Corporation B bonds. 8. h. Sold 150 shares of Corporation A stock for $28 Received å cash dividend of $1.40 per share on the Corporation C stock. per share. i. Interest receivable at year-end on the Corporation B bonds amounts to $60. j. Required: Classify the securities invested in Corporations A, B, and C, and prepare journal entries to record the precéding transactions., Post the entries to T-accounts, and determine the amount of each of the following for the year: Dividend revenue 1. 2. Interest revenue 3. Net gain or loss from selling securities

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Solution Journal Entries SNo Accounts Title Debit Credit Investment in Shares of Corporation A 162... View the full answer