Prepare the entry to record the accrued interest and the

Reference no: EM13583973

Cardinal Paz Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions.

Feb. 1, 2012	Sharapova Company common stock, $116 par, 232 shares	$37,600
April 1	U.S. government bonds, 10%, due April 1, 2022, interest payable April 1 and October 1, 113 bonds of $1,000 par each	113,000
July 1	McGrath Company 12% bonds, par $50,000, dated March 1, 2012, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2032	54,000

(a) Prepare entries necessary to classify the amounts into proper accounts, assuming that all the securities are classified as available-for-sale

(b) Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2012, using the straight-line method.

Sharapova Company common stock		$32,760
U.S. government bonds		146,150
McGrath Company bonds		67,710

What entry or entries, if any, would you recommend be made?

(d) The U.S. government bonds were sold on July 1, 2013, for $120,250 plus accrued interest. Give the proper entry.

Reference no: EM13583973

Questions Cloud

A contractor wishes to build 9 houses each different in : a contractor wishes to build 9 houses each different in design. in how many ways can he place these houses on a street

Is there any significant indication that supports the : in a winter of an epidemic flu 2000 babies were surveyed by a well-known pharmaceutical company to determine if the

When companies accumulate costs they generally use either a : when companies accumulate costs they generally use either a job order or a process costing system. the type of system

Describe the metabolism of ifosfamide in comparison to : describe the metabolism of ifosfamide in comparison to cyclophosphamide using structures and a short paragraph. which

Prepare the entry to record the accrued interest and the : cardinal paz corp. carries an account in its general ledger called investments which contained debits for investment

There are several ways a company can allocate overhead : there are several ways a company can allocate overhead costs to products produced or services provided. two of these

Peter paul mary john and martha are members of the pastoral : peter paul mary john and martha are members of the pastoral council at a local church. they are to be seated at one

Space coast city issued the following during the year ended : space coast city issued the following during the year ended september 30 2010 1 200000 in bonds for the installation of

John has three options for summer work he can do lawn work : john has three options for summer work. he can do lawn work for 100 per week babysit for 125 per week or work at the

User Account

All Pages