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Required information [The following information applies to the questions displayed below.] On January 1, 2019, Rain Technology purchased at par $77,000, 7%, bonds of Lightyear Services Company. The bonds pay interest quarterly on March 31, June 30, September 30, and December 31. Rain Technology's year ends on December 31. The following information applies to the fair value of Lightyear Services' bonds: Bond Price 12/31/2019 $75,000 84,000 79,000 12/31/2020 12/31/2021 Rain Technology sold the bonds on July 14, 2022, for $82,000. 3. Assuming that Rain purchased the bonds as available-for-sale securities, prepare journal entries at the end of each year and on the date of sale. Ignore interest. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Required information [The following information applies to the questions displayed below.] On January 1, 2019, Rain Technology purchased at par $77,000, 7%, bonds of Lightyear Services Company. The bonds pay interest quarterly on March 31, June 30, September 30, and December 31. Rain Technology's year ends on December 31. The following information applies to the fair value of Lightyear Services' bonds: Bond Price 12/31/2019 $75,000 84,000 79,000 12/31/2020 12/31/2021 Rain Technology sold the bonds on July 14, 2022, for $82,000. 3. Assuming that Rain purchased the bonds as available-for-sale securities, prepare journal entries at the end of each year and on the date of sale. Ignore interest. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

FINANCIAL ACCOUNTING
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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Required information [The following information applies to the questions displayed below.] On January 1, 2019, Rain Technology purchased at par $77,000, 7%, bonds of Lightyear Services Company. The bonds pay interest quarterly on March 31, June 30, September 30, and December 31. Rain Technology's year ends on December 31. The following information applies to the fair value of Lightyear Services' bonds: Bond Price 12/31/2019 $75,000 84,000 12/31/2020 12/31/2021 79,000 Rain Technology sold the bonds on July 14, 2022, for $82,000. 3. Assuming that Rain purchased the bonds as available-for-sale securities, prepare journal entries at the end of each year and on the date of sale. Ignore interest. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit 1 December 31, 201 Unrealized loss 2,000 O Investments 2,000 O December 31, 202 No journal entry required December 31, 202 No journal entry required 4 July 14, 2022 July 14, 2022 6 July 14, 2022 Cash Investments
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] On January 1, 2019, Rain Technology purchased at par $77,000, 7%, bonds of Lightyear Services Company. The bonds pay interest quarterly on March 31, June 30, September 30, and December 31. Rain Technology's year ends on December 31. The following information applies to the fair value of Lightyear Services' bonds: Bond Price 12/31/2019 $75,000 84,000 12/31/2020 12/31/2021 79,000 Rain Technology sold the bonds on July 14, 2022, for $82,000. 3. Assuming that Rain purchased the bonds as available-for-sale securities, prepare journal entries at the end of each year and on the date of sale. Ignore interest. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit 1 December 31, 201 Unrealized loss 2,000 O Investments 2,000 O December 31, 202 No journal entry required December 31, 202 No journal entry required 4 July 14, 2022 July 14, 2022 6 July 14, 2022 Cash Investments
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