At the beginning of 2019, Able Company had the following portfolio of investments in trading securities (all of which were acquired at par value): Security Cost 1/1/2019 Fair Value A $20,000 $25,000 B 30,000 29,000 Totals $50,000 $54,000 During 2019, the following transactions occurred: May 3 Purchased C debt securities at their par value for $50,000. July 1 Sold all of the A securities for $27,000 plus interest of $1,000. Dec. 31 Received interest of $7,600 on the B and C securities. Additionally the following information was available: 12/31/2019 Security Fair Value B $29,000 C 52,500 Required: 1. Prepare journal entries to record the preceding information.
At the beginning of 2019, Able Company had the following portfolio of investments in trading securities (all of which were acquired at par value): Security Cost 1/1/2019 Fair Value A $20,000 $25,000 B 30,000 29,000 Totals $50,000 $54,000 During 2019, the following transactions occurred: May 3 Purchased C debt securities at their par value for $50,000. July 1 Sold all of the A securities for $27,000 plus interest of $1,000. Dec. 31 Received interest of $7,600 on the B and C securities. Additionally the following information was available: 12/31/2019 Security Fair Value B $29,000 C 52,500 Required: 1. Prepare journal entries to record the preceding information.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the beginning of 2019, Able Company had the following portfolio of investments in trading securities (all of which were acquired at par value):
| Security | Cost | 1/1/2019 Fair Value |
| A | $20,000 | $25,000 |
| B | 30,000 | 29,000 |
| Totals | $50,000 | $54,000 |
During 2019, the following transactions occurred:
| May 3 | Purchased C debt securities at their par value for $50,000. |
| July 1 | Sold all of the A securities for $27,000 plus interest of $1,000. |
| Dec. 31 | Received interest of $7,600 on the B and C securities. Additionally the following information was available: |
|
|
12/31/2019
|
|
Security
|
Fair Value
|
| B | $29,000 |
| C | 52,500 |
Required:
| 1. | Prepare |
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