Bentz Corporation bought and sold several securities during 2024. Listed below is a summary of the transactions:
Question:
Bentz Corporation bought and sold several securities during 2024. Listed below is a summary of the transactions:
February 17 | Purchased $109,000 of U.S. Treasury 7% bonds at par plus accrued interest of $1,700. The security is to be held for short-term profits. |
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April 10 | Purchased 570 shares of Gauges Incorporated common stock at $147 per share. This security will be held for an unspecified period of time. |
August 8 | Sold 170 shares of Gauges Incorporated for $157 per share. |
October 5 | Sold half of the U.S. Treasury bonds for $55,000 plus accrued interest of $370. |
Required:
Prepare the journal entries for the above transactions.
1)Purchased $109,000 of U.S. Treasury 7% bonds at par plus accrued interest of $1,700. The security is to be held for short-term profits.
2)Purchased 570 shares of Gauges Incorporated common stock at $147 per share. This security will be held for an unspecified period of time.
3)Record the updation of the fair value adjustment.
4)Sold 170 shares of Gauges Incorporated for $157 per share.
5)Record the updation of the fair value adjustment.
6)Sold half of the U.S. Treasury bonds for $55,000 plus accrued interest of $370.
Financial Accounting
ISBN: 978-1259307959
4th edition
Authors: David Spiceland, Wayne Thomas, Don Herrmann