E
xercises
Ex. 181
Milner Corporation had the following transactions pertaining to debt investments.
Jan. 1Purchased 80, 8%, $1,000 Welch Company bonds for $80,000.
July 1Sold 20 Welch Company bonds for $23,400.
Instructions
Prepare journal entries for the purchase and sale of the Welch Company bonds.
Ex. 182
Glaser Company had the following transactions pertaining to debt securities held as a short-term investment.
Jan.1Purchased 40, 8%, $1,000 Adcock Company bonds for $40,000 cash. Interest is payable semiannually on July 1 and January 1.
July1Received semiannual interest on Adcock Company bonds.
Oct.1Sold 30 Adcock Company bonds for $32,000 plus accrued interest.
Instructions
(a)Journalize the transactions.
(b)Prepare the adjusting entry for the accrual of interest on December 31.
Ex. 183
Patrick Company purchased 50 Issac Company 8%, 10-year, €1,000 bonds on January 1, 2014, for €50,000. The bonds pay interest semiannually. On January 1, 2015, after receipt of interest, Patrick Company sold 30 of the bonds for €29,500.
Instructions
Prepare the journal entries to record the transactions described above.
Ex. 184
The following transactions were made by Waite Company. Assume all investments are short-term and are readily marketable.
June2Purchased 300 ordinary shares of Dolen Corporation for $45 per share.
July1Purchased 200 Oslo Corporation bonds for $220,000.
30 Received a cash dividend of $2 per share from Dolen Corporation.
Sept.15Sold 90 shares of Dolen Corporation for $50 per share.
Dec.31Received semiannual interest check for $11,000 from Oslo Corporation.
31 Received a cash dividend of $2 per share from Dolen Corporation.
Instructions
Journalize the transactions.