Kirkland Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debtsecurities.August 2 Purchased Verizon bonds for $10,000.September 7 Purchased Apple bonds for $35,000.September 12 Purchased Mastercard bonds for $20,000.October 21 Sold some of its Verizon bonds that had cost $2,000 for $2,100 cash.October 23 Sold some of its Apple bonds that had cost $15,000 for $15,400 cash.November 1 Purchased Walmart bonds for $40,000.December 10 Sold all of its Mastercard bonds for $18,000 cash. Required1. Prepare journal entries to record these transactions.2. Prepare a table to compare the year-end cost and fair values of its trading debt securities. Year-end fair values: Verizon, $8,500;Apple, $22,000; and Walmart, $39,000.3. Prepare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities.Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Prepare journal entries to record these transactions.View transaction listJournal entry worksheet<1 2 3Note: Enter debits before credits.4 5 6Record sale of Mastercard trading securities with a $20,000 cost in return for$18,000 cash.DateDecember107General JournalDebitCredit>

A journal is a document where all of a business's transactions are initially documented.…

Kirkland Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt securities. August 2 Purchased Verizon bonds for $10,000. September 7 Purchased Apple bonds for $35,000. September 12 Purchased Mastercard bonds for $20,000. October 21 Sold some of its Verizon bonds that had cost $2,000 for $2,100 cash. October 23 Sold some of its Apple bonds that had cost $15,000 for $15,400 cash. November 1 Purchased Walmart bonds for $40,000. December 10 Sold all of its Mastercard bonds for $18,000 cash.

Kirkland Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt securities. August 2 Purchased Verizon bonds for $10,000. September 7 Purchased Apple bonds for $35,000. September 12 Purchased Mastercard bonds for $20,000. October 21 Sold some of its Verizon bonds that had cost $2,000 for $2,100 cash. October 23 Sold some of its Apple bonds that had cost $15,000 for $15,400 cash. November 1 Purchased Walmart bonds for $40,000. December 10 Sold all of its Mastercard bonds for $18,000 cash.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Kirkland Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt securities. Aug. 2 Purchased Verizon bonds for $10,000. Sep. 7 Purchased Apple bonds for $35,000. 12 Purchased Mastercard bonds for $20,000. Oct. 21 Sold some of its Verizon bonds that had cost $2,000 for $2,100 cash. 23 Sold some of its Apple bonds that had cost $15,000 for $15,400 cash. Nov. 1 Purchased Walmart bonds for $40,000. Dec. 10 Sold all of its Mastercard bonds for $18,000 cash. Required 1. Prepare journal entries to record these transactions. 2. Prepare a table to compare the year-end cost and fair values of its trading debt securities. Year-end fair values: Verizon, $8,500; Apple, $22,000; and Walmart, $39,000. 3. Prepare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities.
5. Federer Corporation issued $540,000 in bonds for $498,600. The bonds had a stated rate of 12% and pay interest quarterly. Premium on Bonds Payable Interest Income Discount on Bonds Payable Interest Expense Cash Bonds Payable PLEASE NOTE: For accounts having similar accounting treatment (DR or CR), you are to record accounts in the same order as shown in the textbook. You must enter the account names exactly as written above and all dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345). What is the journal entry to record the issuance of the bonds? DR DR/CR ? CR What is the journal entry to record the first interest payment? (Note: Do not consider the premium or discount.) DR CR
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