Entries for Investment in Bonds, Interest, and Sale of Bonds
The following bond investment transactions were completed during 2012 by Torrence Company:
Jan. 21 Purchased 42, $1,000 par value government bonds at 100 plus 20 days' accrued interest. The bonds pay 6% annual interest on June 30 and January 1.
June 30 Received semiannual interest on bond investment.
Sep. 5 Sold 18, $1,000 par value bonds at 96 plus $201 accrued interest.
Exercise 15-10 (Algorithmic)
Equity Method for Stock Investment
At a total cost of $928,800, Abbott Corporation acquired 72,000 shares of Costello Corp. common stock as a long-term investment. Abbott Corporation uses the equity method of accounting for this investment. Costello Corp. has 200,000 shares of common stock outstanding, including the shares acquired by Abbott Corporation.
Journalize the entries by Abbott Corporation to record the following information:
3) Exercise 15-6 (Algorithmic)
Entries for Investment in Stock, Receipt of Dividends, and Sale of Shares
On February 17, Asher Corporation acquired 8,500 shares of the 300,000 outstanding shares of Dan Co. common stock at $41.90 plus commission charges of $850. On July 11, a cash dividend of $1.15 per share was received. On December 4, 2,800 shares were sold at $50, less commission charges of $336.
see attached file -