Reference no: EM132598649
Question 1: Journalize the entries to record the following selected bond investment transactions for Starks Products:
For a compound transaction, if an amount box does not require an entry, leave it blank.
a. Purchased for cash $72,000 of Iceline, Inc. 9% bonds at 100 plus accrued interest of $1,080, paying interest semiannually.
b. Received first semiannual interest payment.
c. Sold $48,000 of the bonds at 103 plus accrued interest of $550.
Question 2: On September 12, 2,200 shares of Aspen Company are acquired at a price of $34.00 per share plus a $110 brokerage commission. On October 15, a $0.90-per-share dividend was received on the Aspen Company stock. On November 10, 880.00 shares of the Aspen Company stock were sold for $29 per share less a $44 brokerage commission.
Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method.
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: How do Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method. Purchased for cash $72,000 of Iceline, Inc. 9%
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