Ch.15 - CHAPTER 15 INVESTMENTS AND FAIR VALUE ACCOUNTING...

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Unformatted text preview: CHAPTER 15 INVESTMENTS AND FAIR VALUE ACCOUNTING EXERCISES Ex. 151 a. 2010 Sept. 1 InvestmentsJericho Corp. Bonds ........... 120,000 Cash ......................................................... 120,000 b. 2010 Dec. 31 Interest Receivable ...................................... 2,400 Interest Revenue ..................................... 2,400 Accrued interest, $120,000 6% 4/12. c. 2011 Mar. 1 Cash .............................................................. 3,600 Interest Receivable ................................. 2,400 Interest Revenue ..................................... 1,200* *$120,000 6% 2/12 d. 2011 Mar. 1 Cash .............................................................. 40,800* Gain on Sale of Investments .................. 800 InvestmentsJericho Corp. Bonds ...... 40,000 *$40,000 102% Ex. 152 a. 2010 July 12 InvestmentsBergen County Bonds ......... 36,000 Interest Receivable ...................................... 432* Cash ......................................................... 36,432 *$36,000 6% 72/360 b. May 1 Cash .............................................................. 1,080* Interest Receivable ................................. 432 Interest Revenue ..................................... 648 *$36,000 6% Nov. 1 Cash .............................................................. 1,080 Interest Revenue ..................................... 1,080 c. Dec. 1 Cash .............................................................. 14,050* Loss on Sale of Investments ....................... 20 Interest Revenue ..................................... 70 InvestmentsBergen County Bonds .... 14,000 *Bond sale ($14,000 1.02) .......................... $14,280 Accrued interest ........................................... 70 Less brokerage commission ....................... (300) Total proceeds.............................................. $14,050 d. Dec. 31 Interest Receivable ...................................... 220 Interest Revenue ..................................... 220 To accrue interest. Ex. 153 a. 2010 Jan. 21 InvestmentsGovernment Bonds ............. 30,000 Interest Receivable ...................................... 100* Cash ......................................................... 30,100 *$30,000 6% 20/360 June 30 Cash .............................................................. 900* Interest Receivable ................................. 100 Interest Revenue ..................................... 800 *$30,000 6% Sept. 5 Cash .............................................................. 11,894* Loss on Sale of Investments ....................... 240 Interest Revenue ..................................... 134 InvestmentsGovernment Bonds ........ 12,000 *Bond sale ($12,000 98%) ......................... $11,760 Accrued interest ......................................... 134 Total proceeds from sale ........................... $11,894 b. 2010 Dec. 31 Interest Receivable ...................................... Interest Receivable ....
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Ch.15 - CHAPTER 15 INVESTMENTS AND FAIR VALUE ACCOUNTING...

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