Kirkland Company had no trading debt securities prior tothis year. It had the following transactions this yearinvolving trading debt securities.August 2 Purchased Verizon bonds for $50,000.September 7 Purchased Apple bonds for $75,000.September 12 Purchased Mastercard bonds for $60,000.October 21 Sold some of its Verizon bonds that hadcost $4,000 for $4,100 cash.October 23 Sold some of its Apple bonds that had cost$55,000 for $55,400 cash.November 1 Purchased Walmart bonds for $80,000.December 10 Sold all of its Mastercard bonds for$58,000 cash.Required1. Prepare journal entries to record these transactions.2. Prepare a table to compare the year-end cost and fairvalues of its trading debt securities. Year-end fair values:Verizon, $48,500; Apple, $42,000; and Walmart, $59,000.3. Prepare the adjusting entry to record the year-end fairvalue adjustment for the portfolio of trading debtsecurities.Complete this question by entering your ansbelow.Required 1 Required 2 Required 3Prepare a table to compare the year-end cost anddebt securities. Year-end fair values: Verizon, $48,and Walmart, $59,000.Portfolio of Trading SecuritiesVerizon bondsApple bondsWalmart bondsTotal$CostFair Value0 $< Required 10UnrealizedAmountRequired 3 >

A Journal entry is a primary entry that records the financial transactions initially. The…

Answered: Kirkland Company had no trading debt…

Kirkland Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt securities.

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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