Tara-Anderson-Week 3 Solutions

Tara-Anderson-Week 3 Solutions - Here is Week 3 Solutions....

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Here is Week 3 Solutions. Please compare to yours! Ok, thanks, Ms.W. 14–47. (a) 2008 Nov. 1 Investment in Trading Securities—Treasury Bonds. ................................................................. 103,550* Interest Revenue. ................................................ 3,333 Cash. ................................................................ 106,883 *($100,000 × 1.0325) + $300 = $103,550 $100,000 × 0.10 × 4/12 = $3,333 (b) Dec. 31. ................ Unrealized Loss on Trading Securities 450* Market Adjustment—Trading Securities. .............. 450 *Cost Market $ 25,250 $ 23,350 Cost. ........................................................................... $ 161,250 32,450 33,950 Market. ....................................................................... 160,300 103,550 103,000 Balance required in market adjustment ....................................................... account—credit $ 950 $ 161,250 $ 160,300 Balance in market adjustment account—credit ............................................. before adjusting entry 500 ...................... Credit to market adjustment account $ 450 Adjusting entry for accrued interest: Dec. 31 Interest Receivable. ................... 5,000 Interest Revenue. ..................................................... 5,000 (c) 2009 Jan. 1............................................................................ Cash 5,000 Interest Receivable. ................................................. 5,000 (d) July 1 Entry given is correct. (e) Dec. 6 Investment in Available-for-Sale Securities— Fleming Co. ................................................................ 24,500 Market Adjustment—Trading Securities. .................. 1,900 Investment in Trading Securities—Fleming Co. ... 25,250 Unrealized Gain on Transfer of Securities. ........... 1,150 (f) Dec. 31Market Adjustment—Available-for-Sale Securities 450* Unrealized Increase/Decrease in Value of Available-for-Sale Securities. ................................ 450 Unrealized Loss on Trading Securities. .................... 800 Market Adjustment—Trading Securities. ............. 800
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This note was uploaded on 05/29/2011 for the course EC 2011 taught by Professor Johnson during the Spring '11 term at FIT.

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Tara-Anderson-Week 3 Solutions - Here is Week 3 Solutions....

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