Jones Corporation paid $30,000 on September 1, 2020, to buy Gannon's 7%, 90-day debt securities. Jones Corporation intends to hold the bonds until they mature on November 30, 2020; consequently, they are classified as held-to-maturity (HTM securities. Prepare the entry to record this purchase. 

b) Record Jones' entry to record the proceeds when the bonds mature and interest is received. 

Case 2 - Equity Securities - Cost Method On September 12, 2020, Jones Company acquires 2,000 shares of Aspen Company at a price of $50 per share. On October 19, 2020, a $0.50-per-share dividend was received on the Aspen Company stock. Prepare the journal entries for the original purchase and the dividend, assuming Jones has insignificant influence over Aspen. 

Case 3 - Equity Securities - Equity Method On January 2, 2020 Yorkshire Company acquired 40% of the outstanding stock of Fain Company for $500,000. For the year ended December 31, 2020 Fain Company earned income of $140,000 and paid dividends of $50,000. Prepare the journal entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company under the EQUITY method, assuming Yorkshire has significant influence over Fain.

Answer rating: 100% (QA)

a Entry to record the purchase of Gannons debt securities by Jones Corporation September 1 2020 Debt ... View the full answer