Cardinal Paz Corp. carries an account in its general ledger called Investments, which contains debits for investment

Question:

Cardinal Paz Corp. carries an account in its general ledger called Investments, which contains debits for investment purchases, and no credits, with the following descriptions.


Instructions

Round all computations to the nearest dollar.

a. Prepare entries necessary to classify the amounts into proper accounts, assuming that Paz plans to actively manage these investments.

b. Prepare the entry to record the accrued interest on December 31, 2022.

c. The fair values of the investments on December 31, 2022, were:

Sharapova Company shares ..................... $ 31,800
Government bonds ..................................... 124,700
McGrath Company bonds ............................ 58,600


What entry or entries, if any, would you recommend be made?

d. The government bonds were sold on July 1, 2023, for $119,200 plus accrued interest. Give the proper entry.

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Related Book For  book-img-for-question

Intermediate Accounting IFRS

ISBN: 9781119607519

4th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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