Ancore Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt securities. July 28 Purchased Target bonds for $30,000. Aug. 17 Purchased Kroger bonds for $105,000. 26 Purchased Ford bonds for $60,000. Sep. 5 Sold some of its Target bonds that had cost $6,000 for $6,300 cash. 8 Sold some of its Kroger bonds that had cost $45,000 for $46,200 cash. Oct. 12 Purchased Marshall bonds for $120,000. Nov. 28 Sold all of its Ford bonds for $54,000 cash. Required 1. Prepare journal entries to record these transactions. 2. Prepare a table to compare the year-end cost and fair values of Ancore’s trading debt securities. Yearend fair values: Target, $25,500; Kroger, $66,000; and Marshall, $117,000. 3. Prepare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities.
Ancore Company had no trading debt securities prior to this year. It had the following transactions this
year involving trading debt securities.
July 28 Purchased Target bonds for $30,000.
Aug. 17 Purchased Kroger bonds for $105,000.
26 Purchased Ford bonds for $60,000.
Sep. 5 Sold some of its Target bonds that had cost $6,000 for $6,300 cash.
8 Sold some of its Kroger bonds that had cost $45,000 for $46,200 cash.
Oct. 12 Purchased Marshall bonds for $120,000.
Nov. 28 Sold all of its Ford bonds for $54,000 cash.
Required
1. Prepare
2. Prepare a table to compare the year-end cost and fair values of Ancore’s trading debt securities. Yearend
fair values: Target, $25,500; Kroger, $66,000; and Marshall, $117,000.
3. Prepare the
securities.
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