Problem C-1A (Algo) Recording and adjusting trading debt securities LO P1 Kirkland Company had no trading...
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Problem C-1A (Algo) Recording and adjusting trading debt securities LO P1 Kirkland Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt securities. August 2 Purchased Verizon bonds for $38,000. September 7 Purchased Apple bonds for $63,000. September 12 Purchased Mastercard bonds for $48,000. October 21 Sold some of its Verizon bonds that had cost $3,400 for $3,500 cash. October 23 Sold some of its Apple bonds that had cost $43,000 for $43,400 cash. November 1 Purchased Walmart bonds for $68,000. December 10 Sold all of its Mastercard bonds for $46,000 cash. Required 1. Prepare journal entries to record these transactions. 2. Prepare a table to compare the year-end cost and fair values of its trading debt securities. Year-end fair values: Verizon, $36,500; Apple, $36,000; and Walmart, $53,000. 3. Prepare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 11 Required 2 Required 3 Prepare journal entries to record these transactions. No 1 Date August 02 Bonds payable General Joumal Debit Credit 38,000 1 August 02 Bonds payable Cash 38,000 38,000 2 September 07 Bonds payable * 63,000 Cash 63,000 3 September 12 Bonds payable Cash 4 October 21 Cash Gain on sale of stock investments Bonds payable 48,000 0 48,000 3,500 100 3,400 5 October 23 Cash 43,400 Gain on sale datock investments 400 Bonds payable 43,000 6 November 01 Bonds payable Cash * 68,000 68,000 7 December 10 Cash Loss on sale of stock investments Bonds payable 100 46,000 2,000 48,000 3 00 1 Required 1. Prepare journal entries to record these transactions. 2. Prepare a table to compare the year-end cost and fair values of its trading debt securities. Year-end fair values: Verizon, $36,500, Apple, $36,000; and Walmart, $53,000. 3. Prepare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a table to compare the year-end cost and fair values of its trading debt securities. Year-end fair values: Verizon, $36,500; Apple, $36,000; and Walmart, $53,000. Portfolio of Trading Securities Cost Fair Value Unrealized Amount Gain or Loss? Verizon bonds Apple bonds 20,000 $ 34,600 $36,500 36,000 Walmart bonds 68,000 53,000 Total $122,600 $125,500 $ (2,900) Unrealized loss Ret 1 Required 1. Prepare journal entries to record these transactions. 2. Prepare a table to compare the year-end cost and fair values of its trading debt securities. Year-end fair values: Verizon, $36,500; Apple, $36,000; and Walmart, $53,000. 3. Prepare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities. No Date 1 December 01 Account Title Debit Credit 1,900 1,900 Print Purchased Verizon bonds for $38,000. References Purchased Apple bonds for $63,000. Purchased Mastercard bonds for $48,000. Debit 38,C 669 63,0 Sold some of its Verizon bonds that had cost $3,400 for $3,500 cash. 48,0 Sold some of its Apple bonds that had cost $43,000 for $43,400 cash. 6 Purchased Walmart bonds for $68,000. Record sale of Mastercard trading securities with a $48,000 cost in return for $46,000 cash. Note: journal entry has been entered 43,- Problem C-1A (Algo) Recording and adjusting trading debt securities LO P1 Kirkland Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt securities. August 2 Purchased Verizon bonds for $38,000. September 7 Purchased Apple bonds for $63,000. September 12 Purchased Mastercard bonds for $48,000. October 21 Sold some of its Verizon bonds that had cost $3,400 for $3,500 cash. October 23 Sold some of its Apple bonds that had cost $43,000 for $43,400 cash. November 1 Purchased Walmart bonds for $68,000. December 10 Sold all of its Mastercard bonds for $46,000 cash. Required 1. Prepare journal entries to record these transactions. 2. Prepare a table to compare the year-end cost and fair values of its trading debt securities. Year-end fair values: Verizon, $36,500; Apple, $36,000; and Walmart, $53,000. 3. Prepare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 11 Required 2 Required 3 Prepare journal entries to record these transactions. No 1 Date August 02 Bonds payable General Joumal Debit Credit 38,000 1 August 02 Bonds payable Cash 38,000 38,000 2 September 07 Bonds payable * 63,000 Cash 63,000 3 September 12 Bonds payable Cash 4 October 21 Cash Gain on sale of stock investments Bonds payable 48,000 0 48,000 3,500 100 3,400 5 October 23 Cash 43,400 Gain on sale datock investments 400 Bonds payable 43,000 6 November 01 Bonds payable Cash * 68,000 68,000 7 December 10 Cash Loss on sale of stock investments Bonds payable 100 46,000 2,000 48,000 3 00 1 Required 1. Prepare journal entries to record these transactions. 2. Prepare a table to compare the year-end cost and fair values of its trading debt securities. Year-end fair values: Verizon, $36,500, Apple, $36,000; and Walmart, $53,000. 3. Prepare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a table to compare the year-end cost and fair values of its trading debt securities. Year-end fair values: Verizon, $36,500; Apple, $36,000; and Walmart, $53,000. Portfolio of Trading Securities Cost Fair Value Unrealized Amount Gain or Loss? Verizon bonds Apple bonds 20,000 $ 34,600 $36,500 36,000 Walmart bonds 68,000 53,000 Total $122,600 $125,500 $ (2,900) Unrealized loss Ret 1 Required 1. Prepare journal entries to record these transactions. 2. Prepare a table to compare the year-end cost and fair values of its trading debt securities. Year-end fair values: Verizon, $36,500; Apple, $36,000; and Walmart, $53,000. 3. Prepare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities. No Date 1 December 01 Account Title Debit Credit 1,900 1,900 Print Purchased Verizon bonds for $38,000. References Purchased Apple bonds for $63,000. Purchased Mastercard bonds for $48,000. Debit 38,C 669 63,0 Sold some of its Verizon bonds that had cost $3,400 for $3,500 cash. 48,0 Sold some of its Apple bonds that had cost $43,000 for $43,400 cash. 6 Purchased Walmart bonds for $68,000. Record sale of Mastercard trading securities with a $48,000 cost in return for $46,000 cash. Note: journal entry has been entered 43,-
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