Homework - Chapter 15

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QS 15-9 Debt securities transactions L.O. P2

On February 1, 2011, Charo Mendez purchased 6% bonds issued by CR Utilities at a cost of $30,000, which is their par value. The bonds pay interest semiannually on July 31 and January 31. For 2011, prepare entries to record Mendez’s July 31 receipt of interest and its December 31 year-end interest accrual. (Do not round your intermediate calculations. Omit the "$" sign in your response.)


DateGeneral JournalDebitCredi
July 31           

Problem 15-5A Part 2

Part 2

Assume that although Pillar owns 25% of Kildaire’s outstanding stock, circumstances indicate that it does not have a significant influence over the investee and that it is classified as an available-for-sale security investment.


Required:
 

Prepare journal entries to record the preceding transactions and events for Pillar. Also prepare an entry dated January 2, 2013, to remove any balance related to the fair value adjustment. (Omit the "$" sign in your response.)


DateGeneral JournalDebitCredit
Jan. 5, 2011            

Problem 15-2A Part 1

Required:
1.Prepare journal entries to record the preceding transactions and events. (Do not round your intermediate calculations. Use a 360-day year for interest calculation. Omit the "$" sign in your response.)

 

DateGeneral JournalDebitCredit
Apr. 16, 2011             

Problem 15-2A Part 2

2.

Prepare a table to compare the year-end cost and fair values of Perry’s short-term investments in available-for-sale securities. The year-end fair values per share are: Gem Co., $29.25; PepsiCo, $44.25; and Xerox, $14.00. (Do not round your intermediate calculations. Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.)

 

 9.
value:
1.00 points
 
 

Problem 15-2A Part 3

3.

Prepare an adjusting entry, if necessary, to record the year-end fair value adjustment for the portfolio of short-term investments in available-for-sale securities. (Do not round your intermediate calculations. Omit the "$" sign in your response.)

 

DateGeneral JournalDebitCredit
Dec. 31, 2011   [removed]   

 CostFair ValueUnrealized
Gain (Loss)
  Gem Co.$ [removed]  $ [removed]   
  Pepsi Co.[removed]  [removed]   
  Xerox[removed]  [removed]   
 


  Total$ [removed]  $ [removed]  $ [removed]  
 






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