In January 2022, the management of Ivanhoe Company concludes that it has sufficient cash to permit some short-term investments in debt and equity securities. During the year, the following transactions occurred.
In January 2022, the management of Ivanhoe Company concludes that it has sufficient cash to permit some short-term investments in debt and equity securities. During the year, the following transactions occurred.
In January 2022, the management of Ivanhoe Company concludes that it has sufficient cash to permit some short-term investments in debt and equity securities. During the year, the following transactions occurred.
In January 2022, the management of Ivanhoe Company concludes that it has sufficient cash to permit some short-term investments in debt and equity securities. During the year, the following transactions occurred. Feb. 1 Mar. 1 Apr. 1 July 1 Aug. 1 Sept. 1 Oct. 1 Oct. 1 Purchased 800 shares of Muninger common stock for $40,000. Purchased 1,000 shares of Tatman common stock for $25,000. Purchased 70 of $1,100, 8% Yoakem bonds for $77,000. Interest is payable semiannually on April 1 and October 1. Received a cash dividend of $0.60 per share on the Muninger common stock. Sold 266 shares of Muninger common stock at $60 per share. Received a $2 per share cash dividend on the Tatman common stock. Received the semiannual interest on the Yoakem bonds. Sold the Yoakem bonds for $75,300. At December 31, the fair value of the Muninger and Tatman common stocks were $51 and $24 per share respectively. These stock investments by Ivanhoe Company provide less than a 20% ownership interest. Journalize the transactions and post to the accounts Debt Investments and Stock Investments. (Use the T-account form.) (Record journal entries in the order presented in the problem. List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit
Transcribed Image Text:In January 2022, the management of Ivanhoe Company concludes that it has sufficient cash to permit some short-term investments in
debt and equity securities. During the year, the following transactions occurred.
Feb. 1
Mar. 1
Apr. 1
July 1
Aug. 1
Sept. 1
Oct. 1
Oct. 1
Purchased 800 shares of Muninger common stock for $40,000.
Purchased 1,000 shares of Tatman common stock for $25,000.
Purchased 70 of $1,100, 8% Yoakem bonds for $77,000. Interest is payable semiannually on April 1 and October 1.
Received a cash dividend of $0.60 per share on the Muninger common stock.
Sold 266 shares of Muninger common stock at $60 per share.
Received a $2 per share cash dividend on the Tatman common stock.
Received the semiannual interest on the Yoakem bonds.
Sold the Yoakem bonds for $75,300.
At December 31, the fair value of the Muninger and Tatman common stocks were $51 and $24 per share respectively. These stock
investments by Ivanhoe Company provide less than a 20% ownership interest.
Journalize the transactions and post to the accounts Debt Investments and Stock Investments. (Use the T-account form.) (Record
journal entries in the order presented in the problem. List all debit entries before credit entries. Credit account titles are
automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account
titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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