The Adam Corporation had the following transactions during the year: Jan. 15 Purchased 1,500 shares of LMN stock at S10 per share. Purchased 3,000 shares of KJL stock at $20 per share. Received dividends of SI per share of LMN stock. Purchased $20,000 of XYZ bonds for $20,000. Interest of 9% is paid on April 15 and October 15. Sold 1,000 shares of KJL stock for $22,000. Received a $2 dividend per share for KJL stock. Received interest on XYZ bond. Sold the bonds for $21,000. Sold 500 shares of LMN stock for S5,000. On this day, LMN stock is selling for S19 per share and KJL stock is selling for S12 per share. Record th reflect the fair market value of the stock. Feb 15 Mar 15 Apr 15 Aug 15 Sep 15 Oct 15 Oct 15 Nov 15 Dec 31 Instructions: a. Record the transactions for the year in general journal format. b. Show how the stock investment would appear on the balance sheet on December 31.

The Adam Corporation had the following transactions during the year: Jan. 15 Purchased 1,500 shares of LMN stock at S10 per share. Purchased 3,000 shares of KJL stock at $20 per share. Received dividends of SI per share of LMN stock. Purchased $20,000 of XYZ bonds for $20,000. Interest of 9% is paid on April 15 and October 15. Sold 1,000 shares of KJL stock for $22,000. Received a $2 dividend per share for KJL stock. Received interest on XYZ bond. Sold the bonds for $21,000. Sold 500 shares of LMN stock for S5,000. On this day, LMN stock is selling for S19 per share and KJL stock is selling for S12 per share. Record th reflect the fair market value of the stock. Feb 15 Mar 15 Apr 15 Aug 15 Sep 15 Oct 15 Oct 15 Nov 15 Dec 31 Instructions: a. Record the transactions for the year in general journal format. b. Show how the stock investment would appear on the balance sheet on December 31.

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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