Question Details

(solution) Exercise 15-1 Accounting for short-term held to-maturity


Exercise 15-1 Accounting for short-term held to-maturity securities L.O. P2 Prepare journal entries to record the following transactions involving the short-term securities investments of Maxwell Co., all of which occurred during year 2011. a. On February 15, paid $180,000 cash to purchase FTR's 90-day short-term debt securities ($180,000 principal), dated February 15, that pay 10% interest (categorized as held-to-maturity securities). (Omit the "$" sign in your response.) Date General Journal Debit Credit Feb. 15 b. On May 16, received a check from FTR in payment of the principal and 90 days' interest on the debt securities purchased in transaction a. (Do not round your intermediate calculations. Use 360 days a year. Omit the "$" sign in your response.) Date General Journal Debit Credit May 16 Exercise 15-2 Accounting for short-term trading securities L.O. P1 Prepare journal entries to record the following transactions involving the short-term securities investments of Smart Co., all of which occurred during year 2011. a. On March 22, purchased 880 shares of FIX Company stock at $24 per share plus a $310 brokerage fee. These shares are categorized as trading securities. (Omit the "$" sign in your response.) Date General Journal Debit Credit Mar. 22 b. On September 1, received a $1 per share cash dividend on the FIX Company stock purchased in transaction a. (Omit the "$" sign in your response.) Date General Journal Debit Credit Sept. 1 c. On October 8, sold 440 shares of FIX Co. stock for $34 per share, less a $300 brokerage fee. (Do not round your intermediate calculations. Omit the "$" sign in your response.) Date General Journal Debit Credit Oct. 8 Exercise 15-3 Accounting for short-term available-for-sale securities L.O. P3 Prepare journal entries to record the following transactions involving the short-term securities investments of Prairie Co., all of which occurred during year 2011. a. On August 1, paid $60,000 cash to purchase Better Buy's 8% debt securities ($60,000 principal), dated July 30, 2011, and maturing January 30, 2012 (categorized as available-for-sale securities). (Omit the "$" sign in your response.) Date General Journal Debit Credit Aug. 1 b. On October 30, received a check from Better Buy for 90 days' interest on the debt securities purchased in transaction a. (Do not round your intermediate calculations. Use 360 days a year. Omit the "$" sign in your response.) Date General Journal Debit Credit Oct. 30

 


Solution details:

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 13, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now