Business
Intermediate Accounting
Sabran Corporation, a calendar year-end firm. invested in three debt

Sabran Corporation, a calendar year-end firm. invested in three debt securities on December 15, 2016, and classified

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Sabran Corporation, a calendar year-end firm. invested in three debt securities on December 15, 2016, and classified them as trending securities. Sabran sold all three securities on January 1, 2017. The following table provides the purchase price, fair values, annual interest amounts, and selling prices for all three securities. All securities were acquired at face value and pay interest annually each December 31.

Fair Value at Decem- ber 31.2016 Annual Interest Amount Purchase Price Selling Price Security $50,000 25,000 10,000 $45,

Sabran had not purchased any other trading securities before January 1, 2016, and addition make any additional investments subsequent to the sale on January 1, 2017. What journal entries arc required to properly record these events?

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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Fair Value at Decem- ber 31.2016 Annual Interest Amount Purchase Price Selling Price Security $50,000 25,000 10,000 $45,000 $350 $46,000 125 175 32,000 34,000 9.000 8,000 $88,000 Total $650 $85.000 $86 000

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On December 15 Sabran records the purchase of the securities as follows Account December 15 2016 Trading Debt Investments 85000 Interest Receivable 650 x 115 12 623 Cash 85623 On December 31 Sabran re...View the full answer

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Related Book For answer-question

Intermediate Accounting

ISBN: 978-0134730370

2nd edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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Question Posted: Jul 10, 2019 07:34 AM

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