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for as held to maturity. The fair value of the Treasury bonds is $104,000 at year-end.
Required: 143.(1.) Prepare the appropriate journal entry to record the acquisition of the bonds.
(2.) Record the first two interest payments (ignore year-end accruals).
On January 1, 2013, Wildcat Company purchased $93,000 of 10% bonds at face value. The bonds are to
be held to maturity. The bonds pay interest semiannually on January 1 and July 1.
Required: 144.Prepare the appropriate journal entry on December 31, 2013, to properly value the bonds assuming the
bonds are classified as:
(1.) Trading securities.
(2.) Securities available for sale.
(3.) Held-to-maturity securities.
On January 1, 2013, Hoosier Company purchased $930,000 of 10% bonds at face value. The bond market
value was $980,000 on December 31, 2013.
Required: 145.(1.) Prepare the necessary journal entries for FKG on December 31, 2012, and December 31, 2013.
(2.) What net effect would the valuation of these stock investments have on 2012 net income? On 2013
FKG Inc. carries the following investments on its books at December 31, 2012, and December 31, 2013.
All securities were purchased during 2012. Required: 146.Indicate how each of these transactions would affect the statement of cash flows for a corporation.
Assume the statement of cash flows is prepared using the indirect method. Each transaction is assumed to
be independent of the other transactions.
The following transactions occurred during the year for XYZ Corporation:
(a.) During the year, trading securities were purchased for $250,000.
(b.) During the year, securities available for sale were purchased for $80,000.
(c.) During the year, trading securities that are carried on the balance sheet at their fair value of $125,000
were sold for $125,000 cash.
(d.) At the end of the year, the trading securities portfolio has an aggregate market value of $142,000 and
an aggregate cost of $150,000.
(e.) At the end of the year the securities available f...
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- Spring '09
- Balance Sheet, A. Securities