Following is information for Marcel Ltes investments held for trading. Marcel is a public company and has
Question:
Following is information for Marcel Ltée’s investments held for trading. Marcel is a public company and has a December 31 year end.
2024
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.
2025
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 2024 and 2025.
Step by Step Answer:
Accounting Principles Volume 2
ISBN: 9781119786634
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak