The following are the non-strategic investment transactions of Wiki Garden Tool Inc. Assume each bond acquired...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following are the non-strategic investment transactions of Wiki Garden Tool Inc. Assume each bond acquired is purchased with the intention to actively trade. 2020 Feb. 1 Paid $121,000, plus $200 in transaction fees to purchase a $125,000, four-year, 3.5% bond payable of Capital Inc. dated Feb. 1. Interest is paid semiannually beginning August 1. Mar. 29 Bought 101,000 common shares of Regina Inc. for a total of $86,456, plus paid an extra $500 for transaction fees. May 7 Regina Inc.'s board of directors declared a total dividend of $526,000 regarding the total 3,500,000 shares. issued and outstanding. The date of record is May 30, payable June 15. June 1 Paid $140,000 including $500 in transaction fees to purchase a five-year, 6.5%, $137,000 bond payable of Yates Corporation. Interest is paid annually each May 30. 15 Received a cheque regarding the dividends declared on May 7. Aug. 1 Received a cheque from Capital Inc. regarding semiannual interest. 1 Sold the Capital Inc. bond at 98. 17 Purchased 76,000 Tech Inc. common shares at $6.20 plus $400 in transaction fees. Dec. 1 Sold 76,000 of the Regina Inc. shares at $0.95 and incurred $250 in transaction fees. 31 Accrued interest on the Yates bond. Fair values of the equity securities on this date were Regina, $1.00; Tech Inc., $5.60. Assume that the carrying value of the Yates bond was equal to its fair value. 2021 May 30 Received a cheque from Yates Corporation regarding annual interest. Prepare entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations and round your final answers to the nearest whole dollar.) The following are the non-strategic investment transactions of Wiki Garden Tool Inc. Assume each bond acquired is purchased with the intention to actively trade. 2020 Feb. 1 Paid $121,000, plus $200 in transaction fees to purchase a $125,000, four-year, 3.5% bond payable of Capital Inc. dated Feb. 1. Interest is paid semiannually beginning August 1. Mar. 29 Bought 101,000 common shares of Regina Inc. for a total of $86,456, plus paid an extra $500 for transaction fees. May 7 Regina Inc.'s board of directors declared a total dividend of $526,000 regarding the total 3,500,000 shares. issued and outstanding. The date of record is May 30, payable June 15. June 1 Paid $140,000 including $500 in transaction fees to purchase a five-year, 6.5%, $137,000 bond payable of Yates Corporation. Interest is paid annually each May 30. 15 Received a cheque regarding the dividends declared on May 7. Aug. 1 Received a cheque from Capital Inc. regarding semiannual interest. 1 Sold the Capital Inc. bond at 98. 17 Purchased 76,000 Tech Inc. common shares at $6.20 plus $400 in transaction fees. Dec. 1 Sold 76,000 of the Regina Inc. shares at $0.95 and incurred $250 in transaction fees. 31 Accrued interest on the Yates bond. Fair values of the equity securities on this date were Regina, $1.00; Tech Inc., $5.60. Assume that the carrying value of the Yates bond was equal to its fair value. 2021 May 30 Received a cheque from Yates Corporation regarding annual interest. Prepare entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations and round your final answers to the nearest whole dollar.)
Expert Answer:
Answer rating: 100% (QA)
Solution Pali 2020 Feb 1 Mai 29 May 1 June 1 Aug 1 Journal Entries p... View the full answer
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
Posted Date:
Students also viewed these accounting questions
-
On August 5, Hansen Corporation issued 2,000 common shares for $12 per share. On September 10, Hansen issued an additional 500 shares for $13 per share. (a) Record the share transactions. (b) What is...
-
On August 3, Waterways Corporation issued for cash 45,000 shares of no-par common stock (with a stated value of $100) at $128. On September 22, Waterways issued at par 2,000 shares of 1%, $75 par...
-
A Plus Corporation issued 5,000 shares of no-par common stock for $40 per share. A Plus also issued 2,000 shares of $50 par, 5 percent noncumulative preferred stock at $55 per share. Required a....
-
Name four ways to mitigate the incentives for managers to overproduce.
-
Why might market-orientated supply-side policies have undesirable side-effects on aggregate demand?
-
Determine the differential equations governing the motion of the system by using the equivalent systems method. Use the generalized coordinates shown in Figures P2.59. A -- mim 1 m 12 B 2m Slender...
-
An auditor is performing an attribute estimation sampling plan. The risk of assessing control risk too low is .05 and sample size is 80. Assuming one deviation is detected, what is the auditor's...
-
Compute the activity cost rates for materials handling, assembly, and design based on these data: Materials Cloth..........$26,000 Fasteners........4,000 Purchased parts.....40,000 Materials Handling...
-
Radar Company sells bikes for $500 each. The company currently sells 4,350 bikes per year and could make as many as 4,740 bikes per year. The bikes cost $270 each to make: $180 in variable costs per...
-
Construct the ATI curve for the sampling plan N = 1200, n = 50, c = 1. Suppose that the process average nonconforming rate is 3%. Explain the value of ATI for that level of nonconformance.
-
You are the project manager for "Feed Yourself" which is expected to be completed in two months. During monitoring, you realized that it is going to take two-and-half months. What action will you...
-
At your company, $18,400 is spent per month on photocopier expenses. The Quality Assurance Committee determined that 45% was avoidable. New QA practices are predicted to control excessive usage. How...
-
1. Develop a forecasting procedure to be used in all sales reports. Your forecasting procedure should include a. the explanation of forecasting techniques b. clear responsibilities for each team...
-
Firms prefer to categorize expenses as deductible period costs instead of capitalizing them as product costs in their inventory. Tax laws have explicit Uniform Capitalization (UNICAP) rules, which...
-
A company is considering purchasing a parcel of land that was originally acquired by the seller for $ 1 0 3 , 0 0 0 . While the land is currently offered for sale at $ 1 8 6 , 0 0 0 , it is...
-
simulation did not specify the gender of you or your spouse. As you were going through the simulation, what gender did you assign to yourself and your spouse? How was your image of the gender of each...
-
2. in May 7, Ali Co. paid cash $150 as freight expenses FOB shipping point 3. May 12 Ali Co. returns goods purchased in May 7 to Ahmed Co. for $300 4. in May 15, Ali Co. paid the balance due within...
-
Which one of the following anhydrous chloride is not obtained on direct heating of its hydrated chloride? (A) BaCl2 (B) CaClz (C) MgCl2 (D) SrCl2
-
Sask Tractor borrowed $320,000 to purchase inventory on September 17, 2020 for 60 days at 6% interest by signing a note. On December 6, 2020, Sask Tractor sold a tractor for cash of $24,000 (cost...
-
The cost and fair value of non-strategic investments of International Journalist Corporation on December 31, 2020, and December 31, 2021, are as follows: Required 1. Prepare the fair value adjustment...
-
Earth Star Diamonds Inc. began a potentially lucrative mining operation on October 1, 2020. It is authorized to issue 100,000 shares of $0.60 cumulative preferred shares and 500,000 common shares....
-
A mercury manometer reads \(40 \mathrm{~cm}\) at \(30^{\circ} \mathrm{C}\) and \(1 \mathrm{~atm}\). Determine the absolute pressure, given that \(ho_{\mathrm{Hg}}=14.02 \mathrm{~g} /...
-
The potential energy of a body of \(20 \mathrm{~kg}\) mass is \(2 \mathrm{~kJ}\). What should be the height of the body from the ground?
-
A U-tube mercury manometer is connected to a venturimeter to measure the pressure drop of water flowing through a pipeline. If the difference in the mercury levels in the tube is \(20 \mathrm{~cm}\),...
Study smarter with the SolutionInn App