In January 2022, the management of Crane Company concludes that it has sufficient cash to purchase...

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In January 2022, the management of Crane Company concludes that it has sufficient cash to purchase some short-term investments in debt and stock securities. During the year, the following transactions occurred. Jan. 1 Purchased 65 $1,000, 8% TRC bonds for $65,000. Interest is payable annually on December 31. Feb. 1 Purchased 1,150 shares of LAF common stock for $46,000. Mar. 1 Purchased 470 shares of NCL common stock for $16,450. July 1 Received a cash dividend of $0.80 per share on the LAF common stock. Aug. 1 Sold 204 shares of LAF common stock at $39 per share. Sept. 1 Received $2 per share cash dividend on the NCL common stock. Dec. 31 Received the annual interest on the TRC bonds. 31 Sold the TRC bonds for $75,263. At December 31, the fair values of the LAF and NCL common stocks were $36 and $28 per share, respectively. These stock investments by Crane Company provide less than a 20% ownership interest. (a) Journalize the above transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) In January 2022, the management of Crane Company concludes that it has sufficient cash to purchase some short-term investments in debt and stock securities. During the year, the following transactions occurred. Jan. 1 Purchased 65 $1,000, 8% TRC bonds for $65,000. Interest is payable annually on December 31. Feb. 1 Purchased 1,150 shares of LAF common stock for $46,000. Mar. 1 Purchased 470 shares of NCL common stock for $16,450. July 1 Received a cash dividend of $0.80 per share on the LAF common stock. Aug. 1 Sold 204 shares of LAF common stock at $39 per share. Sept. 1 Received $2 per share cash dividend on the NCL common stock. Dec. 31 Received the annual interest on the TRC bonds. 31 Sold the TRC bonds for $75,263. At December 31, the fair values of the LAF and NCL common stocks were $36 and $28 per share, respectively. These stock investments by Crane Company provide less than a 20% ownership interest. (a) Journalize the above transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

Answer rating: 100% (QA)

Jan 1 ShortTerm Investments Bonds 65000 Cash 65000 To record purchase of TRC bonds Feb 1 ShortTerm I... View the full answer