3. The following transactions involving marketable securities investments of KLM Co., occurred during a) On Feb. 15, purchased AAA's 90-day bonds, paying cash of$170,000 (par value $170,000), issue date that pay 9% interest. b) On March 22, purchased 850 shares of BBB Co. at $21 per share, in cash. c) On May 16, collected the principal and 90-days' interest on the bonds purchased in transaction a. d) On Aug. 1, paid $70,000 cash to CCC Co.'s 12% bonds (par value $70,000), issue date July 31, 2021, January 31, 2022. e) On Sept. 1, BBB Co. declared a $1.80 per share cash dividend on shares payable on Oct.31. ) On Oct. 8, sold 425 shares of BBB Co. and collected totally $10,625. 3) On Oct. 31, collected CCC Co.'s 90-days' interest and BBB Co.'s dividends. Required: Prepare the journal entries and post to necessary ledger accounts.

3. The following transactions involving marketable securities investments of KLM Co., occurred during a) On Feb. 15, purchased AAA's 90-day bonds, paying cash of$170,000 (par value $170,000), issue date that pay 9% interest. b) On March 22, purchased 850 shares of BBB Co. at $21 per share, in cash. c) On May 16, collected the principal and 90-days' interest on the bonds purchased in transaction a. d) On Aug. 1, paid $70,000 cash to CCC Co.'s 12% bonds (par value $70,000), issue date July 31, 2021, January 31, 2022. e) On Sept. 1, BBB Co. declared a $1.80 per share cash dividend on shares payable on Oct.31. ) On Oct. 8, sold 425 shares of BBB Co. and collected totally $10,625. 3) On Oct. 31, collected CCC Co.'s 90-days' interest and BBB Co.'s dividends. Required: Prepare the journal entries and post to necessary ledger accounts.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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