Star Co. has bonds with a face value of $200 per share, a term of 3 years, and an interest rate of 8% p.a. paid every May 1 and November 1. Ombre Co. bought 2,500 shares of bonds owned by Star Co. priced at $350 per share on May 1, 2021, excluding brokerage fees of $15 per share. These investments are classified as Trading Securities. On March 1, 2022, Ombre Co. sold 20% of Star Co.'s bonds. priced at $375 per share excluding brokerage fees of $15 per share. On December 1, 2022, 450 of Star Co.'s bonds. sold at a profit of IDR 20 per share. Additional information : Date Announcement of profit (loss) Dividend Payment Fair Value per Sheet 31 Dec 2021 $70,000 $95 per share $375 31 Dec 2022 ($10,000) - $340 Requested: Make the necessary journal entries for Ombre Co. during 2021 and 2022! Solve ASAP in 45 minutes
Star Co. has bonds with a face value of $200 per share, a term of 3 years, and an interest rate of 8% p.a. paid every May 1 and November 1. Ombre Co. bought 2,500 shares of bonds owned by Star Co. priced at $350 per share on May 1, 2021, excluding brokerage fees of $15 per share. These investments are classified as Trading Securities. On March 1, 2022, Ombre Co. sold 20% of Star Co.'s
Additional information :
|
Date |
Announcement of |
Dividend Payment |
Fair Value per Sheet |
|
31 Dec 2021 |
$70,000 |
$95 per share |
$375 |
|
31 Dec 2022 |
($10,000) |
- |
$340 |
Requested:
Make the necessary
Solve ASAP in 45 minutes
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