Prepare journal entries to record the following transactions involving both the short-term and long-term investments of Cancun Corp., all of which occurred during the current year. a. On February 15, paid $160,000 cash to purchase GMI’s 90-day short-term notes at par, which are dated February 15 and pay 10% interest (classified as held-to-maturity). b. On March 22, bought 700 shares of Fran Inc. common stock at $51 cash per share. Cancun’s stock investment results in it having an insignificant influence over Fran. c. On May 15, received a check from GMI in payment of the principal and 90 days’ interest on the notes purchased in part a. d. On July 30, paid $100,000 cash to purchase MP Inc.’s 8%, six-month notes at par, dated July 30 (classified as trading securities). e. On September 1, received a $1 per share cash dividend on the Fran Inc. common stock purchased in part b. f. On October 8, sold 30 shares of Fran Inc. common stock for $54 cash per share. g. On October 30, received a check from MP Inc. for three months’ interest on the notes purchased in part d.
Prepare journal entries to record the following transactions involving both the short-term and long-term investments of Cancun Corp., all of which occurred during the current year. a. On February 15, paid $160,000 cash to purchase GMI’s 90-day short-term notes at par, which are dated February 15 and pay 10% interest (classified as held-to-maturity). b. On March 22, bought 700 shares of Fran Inc. common stock at $51 cash per share. Cancun’s stock investment results in it having an insignificant influence over Fran. c. On May 15, received a check from GMI in payment of the principal and 90 days’ interest on the notes purchased in part a. d. On July 30, paid $100,000 cash to purchase MP Inc.’s 8%, six-month notes at par, dated July 30 (classified as trading securities). e. On September 1, received a $1 per share cash dividend on the Fran Inc. common stock purchased in part b. f. On October 8, sold 30 shares of Fran Inc. common stock for $54 cash per share. g. On October 30, received a check from MP Inc. for three months’ interest on the notes purchased in part d.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Prepare
investments of Cancun Corp., all of which occurred during the current year.
a. On February 15, paid $160,000 cash to purchase GMI’s 90-day short-term notes at par, which are
dated February 15 and pay 10% interest (classified as held-to-maturity).
b. On March 22, bought 700 shares of Fran Inc. common stock at $51 cash per share. Cancun’s stock
investment results in it having an insignificant influence over Fran.
c. On May 15, received a check from GMI in payment of the principal and 90 days’ interest on the notes
purchased in part a.
d. On July 30, paid $100,000 cash to purchase MP Inc.’s 8%, six-month notes at par, dated July 30 (classified
as trading securities).
e. On September 1, received a $1 per share cash dividend on the Fran Inc. common stock purchased in
part b.
f. On October 8, sold 30 shares of Fran Inc. common stock for $54 cash per share.
g. On October 30, received a check from MP Inc. for three months’ interest on the notes purchased in part d.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
Expert Answers to Latest Homework Questions
Q: Draw the major substitution products you would expect for the reaction shown below. If substitution…
Q: crete a nursing care plan for abdominal pain including nursing diagonosis, goals ,interventions, nd…
Q: Model 5: Structural formula of butane and 2-butene
HHHH
H-C-C-C-C-H
HHHH
Butane
H
H-C-C-C-C-H
HHHH…
Q: calculate the number of moles containing each following: 1.50 x 10^22 atoms of silver, Ag
Q: Model 4: Structural formula of a hydrocarbon and its name
HHHH
H-C-C-C-C-CEC-H
нннн
1-hexyne
Key…
Q: solve part a and B.
Q: solve part e
Q: give handwritten solution to this please
Q: 6. An air conditioner takes outside air at 35°C and cools it to 15 °C at a rate of 1 kg/s. Estimate…
Q: You want to select 6 donuts from a store. They make four kinds that you like: chocolate, caramel,…
Q: How many distinct 8-digit integers can we obtain when arranging the 8 numbers: 1, 2, 3, 2, 1, 2, 3,…
Q: Find the number of integer solutions of the following equation, given the conditions on the…
Q: (a) In how many distinguishable ways can you order the letters of the word OTTAWA? (b) In how many…
Q: The Student Council consists of 10 juniors and 12 seniors. A committee of two juniors and two…
Q: S = {1, 2, 3, 4, 5}. (a) Pick 3 numbers from S without repetition to make a 3-digit integer. How…
Q: Let S = {1, 2, 3, ..., 199, 200}. (a) How many integers in S are multiple of 4 or 5? (b) How many…
Q: In a university, there are 40 students majoring in math. They need to take at least one of three…
Q: una barra de 6 kg se suelta desde la posicion horizontal y cae de la posicion 1 a la 2. La longitud…
Q: An investor will receive equal payments of $700 for four years, and the first payment will be…
Q: Problem 1
A rectangular beam is simply supported on two walls, 240 mm thick and 6 m apart (center to…
Q: answer it