Prepare entries to record the following non-strategic, short-term investment transactions of Aryee Corporation: Analysis Component If the
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Prepare entries to record the following non-strategic, short-term investment transactions of Aryee Corporation:
Analysis Component If the adjusting entry on December 31, 2014, were not recorded, what would the effect be on the income statement and balance sheet? Based on your understanding of GAAP, would it be better or worse to omit an unrealized holding loss than an unrealized holding gain?Explain.
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2014 Paid $60,980 to purchase a $60,000 two-year, 7% bond payable of Cordy Corporation dated March 1. Interest is paid quarterly beginning June 1 Bought 2,000 common shares of Windsor Motors at $25.50 Paid $38,968 to purchase a five-year, 4.5%, $40,000 bond payable of Bates Corporation. Interest is paid annually each April 30 Received a cheque from Cordy Corporation regarding quarterly interest. Windsor Motors' board of directors declared a dividend of S0.75 per share to shareholders of record on August 10, payable August 15 Received the Windsor Motors dividend Received a cheque from Cordy Corporation regarding quarterly interest. Purchased 25,000 Delta Inc. common shares at $3.20 Mar Apr. May 16 June Aug 1 1 15 1 Sept.1 17 Oct 20 Sold the Windsor Motors shares at 531.00 Dec. 1 1 31 Received a cheque from Cordy Corporation regarding quarterly interest. Sold the Cordy Corporation bond at 101. Accrued interest on the Bates bond. The fair value of the equity security on this date was: Delta, $3.50. The carrying value equalled the fair value for the Bates bond 2015 30 Apr. Received a cheque from Bates Corporation regarding annual interest.
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Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
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