Prepare entries to record the following non-strategic investment transactions of Arrowhead Investment Corporation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) 2023 Mar. 1 Paid $67,980 to purchase a $67,000, two-year, 7.0% bond payable of Action Corporation dated March 1. There was a $95 transaction fee included in the above-noted payment amount. Interest is paid quarterly beginning June 1. Management intends to actively trade bond purchases. Apr. 16 Bought 2,700 common shares of Brandon Motors at $27.00. There was a $95 transaction fee included in the above - noted payment amount. May 2 Paid $52,968 to purchase a five-year, 4.50%, $
Prepare entries to record the following non-strategic investment transactions of Arrowhead Investment Corporation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) 2023 Mar. 1 Paid $67,980 to purchase a $67,000, two-year, 7.0% bond payable of Action Corporation dated March 1. There was a $95 transaction fee included in the above-noted payment amount. Interest is paid quarterly beginning June 1. Management intends to actively trade bond purchases. Apr. 16 Bought 2,700 common shares of Brandon Motors at $27.00. There was a $95 transaction fee included in the above - noted payment amount. May 2 Paid $52,968 to purchase a five-year, 4.50%, $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Prepare entries to record the following non-strategic investment transactions of Arrowhead Investment Corporation. (If
no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round
intermediate calculations. Round your final answers to the nearest whole dollar amount.) 2023 Mar. 1 Paid $67,980 to
purchase a $67,000, two-year, 7.0% bond payable of Action Corporation dated March 1. There was a $95 transaction
fee included in the above - noted payment amount. Interest is paid quarterly beginning June 1. Management intends to
actively trade bond purchases. Apr. 16 Bought 2,700 common shares of Brandon Motors at $27.00. There was a $95
transaction fee included in the above-noted payment amount. May 2 Paid $52,968 to purchase a five-year, 4.50%, $
54,000 bond payable of Collingwood Corporation. There was a $95 transaction fee included in the above-noted
payment amount. Interest is paid annually each April 30. June 1 Received a cheque from Action Corporation regarding
quarterly interest. Aug. 1 Brandon Motors' board of directors declared a dividend of $0.75 per share to shareholders of
record on August 10, payable August 15. 15 Received the Brandon Motors dividend. Sept. 1 Received a cheque from
Action Corporation regarding quarterly interest. 17 Purchased 26, 400 Dauphin Inc. common shares at $3.70. There was
a $95 transaction fee. Oct. 20 Sold the Brandon Motors shares at $31.30. Dec. 1 Received a cheque from Action
Corporation regarding quarterly interest. 1 Sold the Action Corporation bond at 101. 31 Accrued interest on the
Collingwood bond. The fair value of the equity security on this date was Dauphin, $4.00. The carrying value equalled
the fair value for the Collingwood bond. 2024 Apr. 30 Received a cheque from Collingwood Corporation regarding
annual interest.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5597aaf6-08d8-4816-aa8f-f23cc94788a0%2F9d032c15-3908-478e-90fd-30dd65e4de3c%2Ffdhpou_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Prepare entries to record the following non-strategic investment transactions of Arrowhead Investment Corporation. (If
no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round
intermediate calculations. Round your final answers to the nearest whole dollar amount.) 2023 Mar. 1 Paid $67,980 to
purchase a $67,000, two-year, 7.0% bond payable of Action Corporation dated March 1. There was a $95 transaction
fee included in the above - noted payment amount. Interest is paid quarterly beginning June 1. Management intends to
actively trade bond purchases. Apr. 16 Bought 2,700 common shares of Brandon Motors at $27.00. There was a $95
transaction fee included in the above-noted payment amount. May 2 Paid $52,968 to purchase a five-year, 4.50%, $
54,000 bond payable of Collingwood Corporation. There was a $95 transaction fee included in the above-noted
payment amount. Interest is paid annually each April 30. June 1 Received a cheque from Action Corporation regarding
quarterly interest. Aug. 1 Brandon Motors' board of directors declared a dividend of $0.75 per share to shareholders of
record on August 10, payable August 15. 15 Received the Brandon Motors dividend. Sept. 1 Received a cheque from
Action Corporation regarding quarterly interest. 17 Purchased 26, 400 Dauphin Inc. common shares at $3.70. There was
a $95 transaction fee. Oct. 20 Sold the Brandon Motors shares at $31.30. Dec. 1 Received a cheque from Action
Corporation regarding quarterly interest. 1 Sold the Action Corporation bond at 101. 31 Accrued interest on the
Collingwood bond. The fair value of the equity security on this date was Dauphin, $4.00. The carrying value equalled
the fair value for the Collingwood bond. 2024 Apr. 30 Received a cheque from Collingwood Corporation regarding
annual interest.
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