On April 30 of Year 1, the Aggie Corporation purchased

On April 30 of Year 1, the Aggie Corporation purchased available-for-sale securities. These securities consisted of
(a) Smith Corporation 10%, five-year bonds with a face value of $12,000, which were purchased at par plus four months of accrued interest
(b) 300 shares of Bike Company common stock, which were purchased at $20 per share. Prepare the April 30 journal entry to record the purchase of these available-for-sale securities.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...

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