vesunens i avaravie visare securues. Year 1 January 20 Purchased Johnson & Johnson bonds for $26,500. February 9 Purchased Sony notes for $60,840. June 12 Purchased Mattel bonds for $46,500. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $30,700; Sony, $49,950; and Mattel, $55,250. Year 2 April 15 July 5 July 22 August 19 Purchased Sara Lee notes for $16,300. Purchased Kodak bonds for $19,500. December 31 Fair values for debt in the portfolio are Kodak, $19,425; Sara Lee, $18,000; and Sony, $63,000. Year 3 Sold all of the Johnson & Johnson bonds for $29,500. Sold all of the Mattel bonds for $40,050. February 27 Purchased Microsoft bonds for $159,400. June 21 Sold all of the Sony notes for $62,400. June 30 Purchased Black & Decker bonds for $56,400. August 3 Sold all of the Sara Lee notes for $15, 150. November 1 Sold all of the Kodak bonds for $24,375. December 31 Fair values for debt in the portfolio are Black & Decker, $58, 200; and Microsoft, $159,800. Problem 15-2A (Algo) Part 1 Required: 1. Prepare journal entries to record these transactions and the year-end fair value adjustments to the portfolio of long-term available- for-sale debt securities.

vesunens i avaravie visare securues. Year 1 January 20 Purchased Johnson & Johnson bonds for $26,500. February 9 Purchased Sony notes for $60,840. June 12 Purchased Mattel bonds for $46,500. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $30,700; Sony, $49,950; and Mattel, $55,250. Year 2 April 15 July 5 July 22 August 19 Purchased Sara Lee notes for $16,300. Purchased Kodak bonds for $19,500. December 31 Fair values for debt in the portfolio are Kodak, $19,425; Sara Lee, $18,000; and Sony, $63,000. Year 3 Sold all of the Johnson & Johnson bonds for $29,500. Sold all of the Mattel bonds for $40,050. February 27 Purchased Microsoft bonds for $159,400. June 21 Sold all of the Sony notes for $62,400. June 30 Purchased Black & Decker bonds for $56,400. August 3 Sold all of the Sara Lee notes for $15, 150. November 1 Sold all of the Kodak bonds for $24,375. December 31 Fair values for debt in the portfolio are Black & Decker, $58, 200; and Microsoft, $159,800. Problem 15-2A (Algo) Part 1 Required: 1. Prepare journal entries to record these transactions and the year-end fair value adjustments to the portfolio of long-term available- for-sale debt securities.

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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Year 1 January 20 Purchased Johnson & Johnson bonds for $28,200. February 9 Purchased Sony notes for $64,890. June 12 Purchased Mattel bonds for $50,500. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $33,500; Sony, $53,350; and Mattel, $58,750. Year 2 April 15 Sold all of the Johnson & Johnson bonds for $33,500. July 5 Sold all of the Mattel bonds for $42,850. July 22 Purchased Sara Lee notes for $20,500. August 19 Purchased Kodak bonds for $22,300. December 31 Fair values for debt in the portfolio are Kodak, $22,825; Sara Lee, $22,000; and Sony, $66,000. Year 3 February 27 Purchased Microsoft bonds for $159,800. June 21 Sold all of the Sony notes for $65,600. June 30 Purchased Black & Decker bonds for $60,400. August 3 Sold all of the Sara Lee notes for $18,750. November 1 Sold all of the Kodak bonds for $26,975. December 31 Fair values for debt in the portfolio are Black & Decker, $60,600; and Microsoft, $160,600. 3. Complete the following table that…
Paris Inc. began operations in Year 1. Following is a series of transactions and events involving its longterm debt investments in available-for-sale securities. Year 1 Mar. 10 Purchased Apple bonds for $30,600. Apr. 7 Purchased Ford notes for $56,250. Sep. 1 Purchased Polaroid bonds for $28,200. Dec. 31 Fair values for debt in the portfolio are Apple, $33,000; Ford, $54,600; and Polaroid, $29,400. Year 2 Apr. 26 Sold all of the Ford notes for $51,250. June 2 Purchased Duracell bonds for $34,650. June 14 Purchased Sears notes for $25,200. Nov. 27 Sold all of the Polaroid bonds for $30,600. Dec. 31 Fair values for debt in the portfolio are Apple, $31,000; Duracell, $32,400; and Sears, $27,600. Year 3 Jan. 28 Purchased Coca-Cola bonds for $40,000. Aug. 22 Sold all of the Apple bonds for $25,800. Sep. 3 Purchased Motorola notes for $84,000. Oct. 9 Sold all of the Sears notes for $28,800. Oct. 31 Sold all of the Duracell bonds for $27,000. Dec. 31 Fair values for debt in the portfolio are…
Mead Incorporated began operations in Year 1. Following is a series of transactions and events involving its long-term debt investments in available-for-sale securities. Year 1 January 20 Purchased Johnson & Johnson bonds for $28,200. February 9 Purchased Sony notes for $64,890. June 12 Purchased Mattel bonds for $50,500. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $33,500; Sony, $53,350; and Mattel, $58,750. Year 2 Sold all of the Johnson & Johnson bonds for $33,500. July 5 Sold all of the Mattel bonds for $42,850. July 22 Purchased Sara Lee notes for $20,500. August 19 Purchased Kodak bonds for $22,300. December 31 Fair values for debt in the portfolio are Kodak, $22,825; Sara Lee, $22,000; and Sony, $66,000. April 15 Year 3 February 27 Purchased Microsoft bonds for $159,800. June 21 Sold all of the Sony notes for $65,600. June 30 Purchased Black & Decker bonds for $60,400. Sold all of the Sara Lee notes for $18,750. Sold all of the Kodak bonds for…
TB MC Qu. 15-99 (Algo) Carpark Services... Carpark Services began operations in 20X1 and maintains investments in available-for-sale debt securities. The year-end cost and fair values for its portfolio of debt securities follows. Available-for-Sale Securities December 31, 20X1 December 31, 20X2 Cost $ 340,000 $ 412,000 Multiple Choice Fair Value $ 344,600 $ 429, 200 The year-end adjusting entry to record the unrealized gain/loss at December 31, 20X2 is: Debit Unrealized Gain - Equity $17,200; Credit Fair Value Adjustment - Available-for-Sale $17,200. Debit Fair Value Adjustment - Available-for-Sale $12,600; Credit Unrealized Loss - Equity $4,600; Credit Unrealized Gain - Equity, $8,000. Debit Fair Value Adjustment - Available-for-Sale $17,200; Credit Unrealized Gain - Equity, $17,200. Debit Fair Value Adjustment - Available-for-Sale $17,200; Credit Unrealized Loss - Equity $17,200. Debit Fair Value Adjustment - Available-for-Sale $12,600; Credit Unrealized Gain Equity $12,600.
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Paris Inc. began operations in Year 1. Following is a series of transactions and events involving its longtermdebt investments in available-for-sale securities.Year 1Mar. 10 Purchased Apple bonds for $30,600.Apr. 7 Purchased Ford notes for $56,250.Sep. 1 Purchased Polaroid bonds for $28,200.Dec. 31 Fair values for debt in the portfolio are Apple, $33,000; Ford, $54,600; and Polaroid, $29,400.Year 2Apr. 26 Sold all of the Ford notes for $51,250.June 2 Purchased Duracell bonds for $34,650.June 14 Purchased Sears notes for $25,200.Nov. 27 Sold all of the Polaroid bonds for $30,600.Dec. 31 Fair values for debt in the portfolio are Apple, $31,000; Duracell, $32,400; and Sears, $27,600.Year 3Jan. 28 Purchased Coca-Cola bonds for $40,000.Aug. 22 Sold all of the Apple bonds for $25,800.Sep. 3 Purchased Motorola notes for $84,000.Oct. 9 Sold all of the Sears notes for $28,800.Oct. 31 Sold all of the Duracell bonds for $27,000.Dec. 31 Fair values for debt in the portfolio are Coca-Cola, $48,000,…
10. Float Corporation had the following transactions pertaining to debt investments. Jan. 1 Purchased 100 8%, $1,000 Qaiz Co. bonds for $100,000 cash plus brokerage fees of $1,800. Interest is payable semiannually on July 1 and January 1. Received semiannual interest on Qaiz Co. bonds. Sold 60 Qaiz Co. bonds for $68,000 less $1,000 brokerage fees. July 1 July 1 Required: a) Journalize the transactions. b) Prepare the adjusting entry for the accrual of interest at December 31.
Required information [The following information applies to the questions displayed below.] Mead Incorporated began operations in Year 1. Following is a series of transactions and events involving its long-term debt investments in available-for-sale securities. Year 1 January 20 Purchased Johnson & Johnson bonds for $28,200. February 9 Purchased Sony notes for $64,890. June 12 Purchased Mattel bonds for $50,500. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $33,500; Sony, $53,350; and Mattel, $58,750. Year 2 April 15 Sold all of the Johnson & Johnson bonds for $33,500. July 5 Sold all of the Mattel bonds for $42,850. July 22 Purchased Sara Lee notes for $20,500. August 19 Purchased Kodak bonds for $22,300. December 31 Fair values for debt in the portfolio are Kodak, $22,825; Sara Lee, $22,000; and Sony, $66,000. Year 3 February 27 Purchased Microsoft bonds for $159,800. June 21 Sold all of the Sony notes for $65,600. June 30 Purchased Black & Decker bonds for…
Counting Inc. began operations in Year 1, following is a series of transactions and events involving its long-term debt investments in available-for-sale securities. Year 1 Jan. 20 Purchased Disney bonds for $45,500. Feb. 9 Purchased notes of Target for $69,490. June 12 Purchased bonds of Game Stop for $35,000. Dec. 31 Fair values for debt in the portfolio are Disney $52,000, Target $65,000, and Game Stop $36,500. Year 2 Apr. 15 Sold all of the bonds of Disney for $52,000. July 5 Sold all of the bonds of Game Stop for $39,000. July 22 Purchased notes of McDonalds for $37,100. Aug. 19 Purchased bonds of Amazon for $28,450. Dec. 31 Fair values for debt in the portfolio are Target $71,000, McDonalds $38,000, Amazon $32,000 Prepare journal entries for the transactions