ACC-302-Ch-14-solutions-practice

ACC-302-Ch-14-solutions-practice - EXERCISES 1423. (a)...

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EXERCISES 14–23. (a) Investment in Trading Securities—Treasury Bonds. ............. 123,590* Interest Revenue. ....................................................................... 1,500 Cash. ..................................................................................... 125,090 To record purchase of $120,000 of U.S. Treasury 8% bonds. *1.025 × $120,000 = $123,000; $123,000 + $590 brokerage fee = $123,590 (b) Investment in Available-for-Sale Securities—Agler Co. ......... 176,200 Cash. ..................................................................................... 176,200 To record purchase of 1,000 shares of Agler Co. common stock. (c) Cash. ........................................................................................... 4,800 Interest Revenue. ................................................................. 4,800 To record receipt of semiannual interest on U.S. Treasury 8% bonds ($120,000 × 0.04). (d) Cash. ........................................................................................... 27,750* Investment in Available-for-Sale Securities— Agler Co. ........................................................................... 26,430 Realized Gain on Sale of Securities. .................................. 1,320 To record sale of 150 shares of Agler Co. stock. *150 shares at $185 per share = $27,750 (150/1,000) × $176,200 = $26,430 (e) Cash. ........................................................................................... 20,675* Realized Loss on Sale of Securities. ....................................... 198 Investment in Trading Securities—Treasury Bonds. ........ 20,598 Interest Revenue. ................................................................. 275 To record sale of $20,000 worth of U.S. Treasury 8% bonds. *$20,000 × 1.02 = $20,400; $20,400 + $275 accrued interest = $20,675 (20,000/120,000) × $123,590 = $20,598 (rounded) (f) Investment in Trading Securities—Certificate of Deposit. ..... 15,000 Cash. ..................................................................................... 15,000 To record purchase of a $15,000, 6-month certificate of deposit.
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14–24. 1. Investment in Trading Securities—Gimli. ................................ 9,000 Investment in Trading Securities—Treasury Bonds. ............. 11,000 Investment in Available-for-Sale Securities—Legolas. .......... 22,000 Investment in Available-for-Sale Securities—Glorfindel. ....... 42,500 Investment in Held-to-Maturity Securities—Mirkwood. .......... 24,000 Cash. ..................................................................................... 108,500 To record the purchase of securities during January. 2. Cash. ........................................................................................... 5,390 Interest Revenue. ................................................................. 3,630 Dividend Revenue. ............................................................... 1,760 To record the receipt of interest and dividend
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ACC-302-Ch-14-solutions-practice - EXERCISES 1423. (a)...

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