Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Available for Sale and Held-to-Maturity Debt Securities Entries The following information ...

Available for Sale and Held-to-Maturity Debt Securities Entries The following information relates to the debt securities investments of Wildcat Company On February 1 the company purchased

vailable-fo -Sale and Held-to-Maturity Debt Securities Entries) The following information relates to the debt securities investments of Wildcat Company.

 

1. On February 1, the company purchased 10% bonds of Gibbons Co. having a par value of $300,000 at 100 plus accrued interest. Interest is payable April 1 and October 1.

2. On April 1, semiannual inte est is eceived.

3. On July 1, 9% bonds of Sampson, Inc. we pu chased. These bonds with par value of $200,000

we e pu chased at 100 plus acc ued inte est. Inte est dates a e June 1 and December 1.

4. On September 1, bonds with par value of $60,000, pu chased on Feb uary 1, sold at 99 plus

acc ued inte est.

5. On October 1, semiannual inte est is eceived.

6. On December 1, semiannual inte est is eceived.

7. Decembe 31 th fai valu th bond pu chase Feb uar an Jul an 93 espectivel .

 

Instructions

(a) Prepare any journal entries you consider necessary, including year-end entries (December 31), assuming these are available-for-sale securities.

(b) If Wildcat classified these as held-to-maturity investments, explain how the journal entries would differ from those in part (a).

Jun 18 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions