Counting Inc. began operations in Year 1, following is a series of transactions and events involving its long-term debt investments in available-for-sale securities. Year 1 Jan. 20 Purchased Disney bonds for $45,500. Feb. 9 Purchased notes of Target for $69,490. June 12 Purchased bonds of Game Stop for $35,000. Dec. 31 Fair values for debt in the portfolio are Disney $52,000, Target $65,000, and Game Stop $36,500. Year 2 Apr. 15 Sold all of the bonds of Disney for $52,000. July 5 Sold all of the bonds of Game Stop for $39,000. July 22 Purchased notes of McDonalds for $37,100. Aug. 19 Purchased bonds of Amazon for $28,450. Dec. 31 Fair values for debt in the portfolio are Target $71,000, McDonalds $38,000, Amazon $32,000 Prepare journal entries for the transactions
Counting Inc. began operations in Year 1, following is a series of transactions and events involving its long-term debt investments in available-for-sale securities. Year 1 Jan. 20 Purchased Disney bonds for $45,500. Feb. 9 Purchased notes of Target for $69,490. June 12 Purchased bonds of Game Stop for $35,000. Dec. 31 Fair values for debt in the portfolio are Disney $52,000, Target $65,000, and Game Stop $36,500. Year 2 Apr. 15 Sold all of the bonds of Disney for $52,000. July 5 Sold all of the bonds of Game Stop for $39,000. July 22 Purchased notes of McDonalds for $37,100. Aug. 19 Purchased bonds of Amazon for $28,450. Dec. 31 Fair values for debt in the portfolio are Target $71,000, McDonalds $38,000, Amazon $32,000 Prepare journal entries for the transactions
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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| Counting Inc. began operations in Year 1, following is a series of transactions and events involving its long-term debt investments | |
| in available-for-sale securities. | |
| Year 1 | |
| Jan. 20 | Purchased Disney bonds for $45,500. |
| Feb. 9 | Purchased notes of Target for $69,490. |
| June 12 | Purchased bonds of Game Stop for $35,000. |
| Dec. 31 | Fair values for debt in the portfolio are Disney $52,000, Target $65,000, and Game Stop $36,500. |
| Year 2 | |
| Apr. 15 | Sold all of the bonds of Disney for $52,000. |
| July 5 | Sold all of the bonds of Game Stop for $39,000. |
| July 22 | Purchased notes of McDonalds for $37,100. |
| Aug. 19 | Purchased bonds of Amazon for $28,450. |
| Dec. 31 | Fair values for debt in the portfolio are Target $71,000, McDonalds $38,000, Amazon $32,000 |
| Prepare |
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