User Account

All Pages

Preparing journal entries for transactions

Assignment Help Accounting Basics
Reference no: EM13122705

The information below relates to Milton Company's trading securities in 2010 and 2011.

(a) Prepare the journal entries for the following transactions.

May 1, 2010 Purchased $250,000 par value of GLF Company bonds at 97 plus accrued interest. The bonds pay interest annually at 9% each December 31. Broker's commission was $2,500.

September 1, 2010 Sold $125,000 par value of GLF Company bonds at 94 plus accrued interest. Broker's commission, taxes, and fees were $1,250.

September 5, 2010 Purchased 5,000 shares of Hayes, Inc. common stock for $25 per share. The broker's commission on the purchase amounted to $2,000.

December 31, 2010 Make the appropriate entry for the GLF Company bonds.

December 31, 2010 The market prices of the trading securities at December 31 were: Hayes, Inc. common stock, $26 per share; and GLF Company bonds, 99. Make the appropriate entry.

July 1, 2011 Milton sold 1/2 of the Hayes, Inc. common stock at $27 per share. Broker's commissions, taxes, and fees were $1,000.

December 1, 2011 Milton purchased 600 shares of Ramirez, Inc. common stock at $40 per share. Broker's commission was $500.

December 31, 2011 Make the appropriate entry for the GLF Company bonds.

December 31, 2011 The market prices of the trading securities at December 31 were: Hayes, Inc. common stock, $28 per share; GLF Company bonds, 98; and Ramirez, Inc. common stock, $42 per share. Make the appropriate entry.

Verified Expert

In this solution we have passes journal entry for purchase and sale of bond, purchase and sale of common stock, and revaluation of bond at the end of financial year.

Reference no: EM13122705

Questions Cloud

Show computations to value the ending inventory : Show computations to value the ending inventory using the weighted-average cost method if 550 units remain on hand at October 31.
Advantages and disadvantages of stating a code of conduct : Briefly describe the advantages and disadvantages of stating a code of conduct using general statements of ideal conduct as opposed to specific rules that define unacceptable behavior.
Income taxes in future financial reporting periods : Are there any provisions that a company can take to avoid a big hit from audit findings for income taxes in future financial reporting periods - sort of a temporary holding accounts?
Determine the amount of depreciation expense : Any plans to depreciate the operating assets on a straight-line basis for 20 years. Determine the amount of depreciation expense for 2010 on these newly acquired assets.
Preparing journal entries for transactions : The information below relates to Milton Company's trading securities in 2010 and 2011. (a) Prepare the journal entries for the following transactions.
How would the assets appear on the balance sheet : Any plans to depreciate the operating assets on a straight-line basis for 20 years. Determine the amount of depreciation expense for 2010 on these newly acquired assets.
E-commerce web site : Final project will be a Java programming project that uses design patterns to help form a dynamic Web database application. Final Project:  e-commerce Web Site
Job order cost accounting system : BC Company uses a job order cost accounting system. During the month of April, the following events occurred:
Preparing a four-column bank reconciliation : By preparing a four-column bank reconciliation ("proof of cash") at year-end, an auditor will generally not be able to detect:

Reviews

Write a Review

Accounting Basics Questions & Answers

  Clients accounts receivable balance

If the auditor obtains sufficient competent evidence on the client's accounts receivable balance by alternative procedures because it is impractical to confirm accounts receivable, the auditor's opinion should be unqualified and could be expected ..

  Journal entries for bond issuance-interest-amortization

Please describe how to prepare necessary journal entries to record the issuance of bonds, the periodic interest, and amortization of bond premiums and discounts.

  Considerations and risks when outsourcing

What are at least 5 considerations you will need to take into account when you make a make-decision versus a buy decision at some point in the future? Explain at least 5 reasons why these risk are important to consider.

  What makes a contribution income statement unique

What makes a contribution income statement unique? Using the company (National Linen) discuss how a contribution income statement could be used to improve planning in that particular company.

  Solving rate of return with excel

You have two investment opportunities. One will have a 10% rate of return on an investment of $500; the other will have an 11% rate of return on a principal of $700.

  Determine initial tax basis

An apartment house was purchased on July 8 of last year, by a taxpayer who computes her taxes on a calendar basis. Her depreciation deduction last year was $7,902.

  Prepare baileys journal entry to correct depreciation

In 2010, Bailey Corporation discovered that equipment purchased on January 1, 2008, for $50,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%.

  Journal entries for business-bad debts

On January 1, 2003, Marina Clothing Company had Accounts Receivable of $54,200 and Allowance for Doubtful Accounts of $4,700. Marina Clothing Company prepares financial statements annually. During the year the following selected transactions occur..

  Determine ship methods from ratios

Many firms recognize revenus at the point of shipment. This provides an incentive to accelerate revenues by shipping goods at the end of the quarter.

  Units-of-production depreciation

Compute the depreciation for each of the three years, assuming the use of units-of-production depreciation.

  Journal entries of garg employment agency

On December 31, the adjusted trial balance of Garg Employment Agency shows the following selected data. Prepare the closing entries for the temporary accounts at December 31.

  Describing transparency and disclosure

Transparency and Disclosure: A company's overall policy for controlling and disseminating inside information must meet the standards for transparency and disclosure. What would the company's specific financial reporting objectives be with respect t..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd