On November $1,2018,$ Reid Corporation acquired bonds with a face value of $$1,000,000$ for $$963,199\mathrm{.}78.$ The bonds carry a stated rate of interest of $11\%,$ were purchased to yield $12\%,$ pay interest semiannually on April $30$ and October $31,$ were purchased to be held to maturity, and are due October $31,2022.$ On November $1,2019,$ in contemplation of a major acquisition, the bonds were sold for $$1,000,000.$ Reid is on a fiscal year accounting period ending October $31$ and uses the effective interest method.

CHART OF ACCOUNTS

Reid Corporation

General Ledger

ASSETS

$111$ Cash

$121$ Accounts Receivable

$137$ Interest Receivable

$141$ Inventory

$152$ Prepaid Insurance

$181$ Equipment

$189$ Accumulated Depreciation

$191$ Investment in Held$-$to$-$Maturity Debt Securities

LIABILITIES

$211$ Accounts Payable

$231$ Salaries Payable

$250$ Unearned Revenue

$261$ Income Taxes Payable

EQUITY

$311$ Common Stock

$331$ Retained Earnings

REVENUE

$411$ Sales Revenue

$431$ Interest Income

$434$ Gain on Sale of Debt Securities

EXPENSES

$500$ Cost of Goods Sold

$511$ Insurance Expense

$512$ Utilities Expense

$521$ Salaries Expense

$532$ Bad Debt Expense

$540$ Interest Expense

$541$ Depreciation Expense

$559$ Miscellaneous Expenses

$599$ Loss on Sale of Debt Securities

$910$ Income Tax Expense

Prepare a balance sheet.

 

Answer rating: 100% (QA)

Sure Ill prepare a balance sheet for Reid Corporation base... View the full answer