Prepare entries to record the following non-strategic investment transactions of Arrowhead Investment Corporation. (If no entry is
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Prepare entries to record the following non-strategic investment transactions of Arrowhead Investment Corporation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)
2020 | |||
Mar. | 1 | Paid $76,980 to purchase a $76,000, two-year, 8.0% bond payable of Action Corporation dated March 1. Interest is paid quarterly beginning June 1. Management intends to actively trade bond purchases. | |
Apr. | 16 | Bought 2,800 common shares of Brandon Motors at $28.00. | |
May | 2 | Paid $54,968 to purchase a five-year, 5.50%, $56,000 bond payable of Collingwood Corporation. Interest is paid annually each April 30. | |
June | 1 | Received a cheque from Action Corporation regarding quarterly interest. | |
Aug. | 1 | Brandon Motors’ board of directors declared a dividend of $0.75 per share to shareholders of record on August 10, payable August 15. | |
15 | Received the Brandon Motors dividend. | ||
Sept. | 1 | Received a cheque from Action Corporation regarding quarterly interest. | |
17 | Purchased 26,600 Dauphin Inc. common shares at $3.90. | ||
Oct. | 20 | Sold the Brandon Motors shares at $31.50. | |
Dec. | 1 | Received a cheque from Action Corporation regarding quarterly interest. | |
1 | Sold the Action Corporation bond at 101. | ||
31 | Accrued interest on the Collingwood bond. The fair value of the equity security on this date was Dauphin, $4.20. The carrying value equalled the fair value for the Collingwood bond. | ||
2021 | |||
Apr. | 30 | Received a cheque from Collingwood Corporation regarding annual interest. |
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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