Question: Townsend Company sells bonds that cost 40 000 for 45 000 including
Townsend Company sells bonds that cost $40,000 for $45,000, including $1,000 of accrued interest. In recording the sale, Townsend books a $5,000 gain. Is this correct? Explain.
Relevant QuestionsTo acquire Engels Corporation stock, Kaiser Co. pays $61,500 in cash. What entry should be made for this investment, assuming the stock is readily marketable?Ginavan Wholesale Supply owns stock in Kriley Corporation, which it intends to hold indefinitely because of some negative tax consequences if sold. Should the investment in Kriley be classified as a short-term investment? ...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 ...On December 31, 2013, Ogleby Associates owned the following securities that are held as long-term investments..:.On this date, the total fair value of the securities was equal to its cost. The securities are not held for ...George Orear, a mid-level product manager for Theresa’s Shoes, thinks his company should switch from LIFO to FIFO. He says, “My bonus is based on net income. If we switch it will increase net income and increase my ...
Post your question