On September 1, Indigo Corporation had the following investments classified as held for trading purposes: $71,000,6% FMC Co. bond, purchased previously by indigo at 201. Interest on the bond is payable semi- annually on January 1 and July 1. $130,000 3% Government of Canada bond, previously purchased by indigo at 98 interest on the bond is payable semi-annually on March 31, and September 30. During the month of September, the following transactions took place: Sept. 1: Purchased $63,000 -4% Alpha inc bond at 99. interest is payable annually on August 31. Received interest on Government of Canada bond Sept. 30 Sept. 30 Sold the Government of Canada bond at 97. Sept. 30 Fair value on FMC Co. bond is $74,550 and fair value of Alpha Inc. bond is $61,740 Record the transactions that occurred in September and prepare any adjusting entries required at September 30. indigo Corporation is a public company and has a September 30 year end. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem)

On September 1, Indigo Corporation had the following investments classified as held for trading purposes: $71,000,6% FMC Co. bond, purchased previously by indigo at 201. Interest on the bond is payable semi- annually on January 1 and July 1. $130,000 3% Government of Canada bond, previously purchased by indigo at 98 interest on the bond is payable semi-annually on March 31, and September 30. During the month of September, the following transactions took place: Sept. 1: Purchased $63,000 -4% Alpha inc bond at 99. interest is payable annually on August 31. Received interest on Government of Canada bond Sept. 30 Sept. 30 Sold the Government of Canada bond at 97. Sept. 30 Fair value on FMC Co. bond is $74,550 and fair value of Alpha Inc. bond is $61,740 Record the transactions that occurred in September and prepare any adjusting entries required at September 30. indigo Corporation is a public company and has a September 30 year end. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem)

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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