a. On February 15, paid $160,000 cash to purchase GMI's 90-day short-term notes at par, which are dated February 15 and pay 9% interest (classified as held-to-maturity). b. On March 22, bought 1,000 shares of Fran Inc. common stock at $50 cash per share. Cancun's stock investment results in it having an insignificant influence over Fran. c. On May 15, received a check from GMI in payment of the principal and 90 days' interest on the notes purchased in part a. d. On July 30, paid $48,000 cash to purchase MP Inc.'s 8%. six-month notes at par, dated July 30 (classified as trading securities). e. On September 1, received a $0.38 per share cash dividend on the Fran Inc. common stock purchased in part b. f. On October 8, sold 500 shares of Fran Inc. common stock for $56 cash per share. g. On October 30, received a check from MP Inc. for three months' interest on the notes purchased in part d. Prepare journal entries to record the above transactions involving both the short-term and long-term investments of Cancun Corp., all of which occurred during the current year. (Use 360 days In a year. Do not round your Intermediate calculations. Round your answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 On February 15, paid $160,000 cash to purchase GMI's 90-day short-term notes at par, which are dated February 15 and pay 9% interest (classified as held-to-maturity). Note: Enter debits before credits. Transaction a. General Journal Debit Credit Record entry Clear entry View general journal
a. On February 15, paid $160,000 cash to purchase GMI's 90-day short-term notes at par, which are dated February 15 and pay 9% interest (classified as held-to-maturity). b. On March 22, bought 1,000 shares of Fran Inc. common stock at $50 cash per share. Cancun's stock investment results in it having an insignificant influence over Fran. c. On May 15, received a check from GMI in payment of the principal and 90 days' interest on the notes purchased in part a. d. On July 30, paid $48,000 cash to purchase MP Inc.'s 8%. six-month notes at par, dated July 30 (classified as trading securities). e. On September 1, received a $0.38 per share cash dividend on the Fran Inc. common stock purchased in part b. f. On October 8, sold 500 shares of Fran Inc. common stock for $56 cash per share. g. On October 30, received a check from MP Inc. for three months' interest on the notes purchased in part d. Prepare journal entries to record the above transactions involving both the short-term and long-term investments of Cancun Corp., all of which occurred during the current year. (Use 360 days In a year. Do not round your Intermediate calculations. Round your answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 On February 15, paid $160,000 cash to purchase GMI's 90-day short-term notes at par, which are dated February 15 and pay 9% interest (classified as held-to-maturity). Note: Enter debits before credits. Transaction a. General Journal Debit Credit Record entry Clear entry View general journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:a. On February 15, paid $160,000 cash to purchase GMI's 90-day short-term notes at par, which are dated February 15 and pay 9%
interest (classified as held-to-maturity).
b. On March 22, bought 1,000 shares of Fran Inc. common stock at $50 cash per share. Cancun's stock investment results in it having
an insignificant influence over Fran.
c. On May 15, received a check from GMI in payment of the principal and 90 days' interest on the notes purchased in part a.
d. On July 30, paid $48,000 cash to purchase MP Inc.'s 8%. six-month notes at par, dated July 30 (classified as trading securities).
e. On September 1, received a $0.38 per share cash dividend on the Fran Inc. common stock purchased in part b.
f. On October 8, sold 500 shares of Fran Inc. common stock for $56 cash per share.
g. On October 30, received a check from MP Inc. for three months' interest on the notes purchased in part d.
Prepare journal entries to record the above transactions involving both the short-term and long-term investments of Cancun Corp., all
of which occurred during the current year. (Use 360 days In a year. Do not round your Intermediate calculations. Round your
answers to the nearest whole dollar.)
View transaction list
Journal entry worksheet
1 2 3 4 5 6 7
On February 15, paid $160,000 cash to purchase GMI's 90-day short-term
notes at par, which are dated February 15 and pay 9% interest (classified as
held-to-maturity).
Note: Enter debits before credits.
Transaction
a.
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
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