The information below relates to Milton Company's trading debt securities in 2017 and 2018. Prepare the journal entries for the following transactions.
a). January 1, 2017 Purchased $400,000 par value of GLF Company bonds at 97 plus accrued interest. The bonds pay interest annually at 9% each December 31. Broker's commission was $4,000.
b). September 1, 2017 Sold $200,000 par value of GLF Company bonds at 95 plus accrued interest. Broker's commission, taxes, and fees were $2,000.
c). December 31, 2017 Make the appropriate entry for the GLF Company bonds.
d). December 31, 2017 The market price of the GLF Company bonds at December 31 was 99: Make the appropriate entry.
e). December 31, 2018 Make the appropriate entry for the GLF Company bonds. December 31, 2018 The market price of the GLF Company bonds at December 31 was 101. Make the appropriate entry.

Present the financial statement disclosure (balance sheet and income statement) of Milton Company's transactions in trading securities for each of the years 2017 and 2018. Appropriate financial statement subheadings must be disclosed.

Answer rating: 100% (QA)

Journal entries January 12017 Debt Investments 400000x0974000 392000 Cash 3920... View the full answer