Menu
support@businesspapershelp.com
+1(805) 568 7317

question problem 17 3 cardinal paz corp carries an account in its general ledgercall 4291848

Question

Problem 17-3

Cardinal Paz Corp. carries an account in its general ledgercalled Investments, which contained debits for investmentpurchases, and no credits, with the following descriptions.

(a) Prepare entries necessary to classify theamounts into proper accounts, assuming that all the securities areclassified as available-for-sale. (Credit accounttitles are automatically indented when amount is entered. Do notindent manually. If no entry is required, select “No Entry” for theaccount titles and enter 0 for the amounts.)

Acct. Titles and Explanation

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

(b) Prepare the entry to record the accruedinterest and the amortization of premium on December 31, 2014,using the straight-line method. (Round answers to 0decimal places, e.g. 2,500. Credit account titles are automaticallyindented when amount is entered. Do not indent manually. If noentry is required, select “No Entry” for the account titles andenter 0 for the amounts.)

Date

Acct. Titles & Explanation

Debit

Credit

12/31/2014

 

 

 

(Blank)

 

 

 

(Blank)

 

 

 

(c) The fair values of the investments onDecember 31, 2014, were:

Sharapova Company Common Stock

$32,460

U.S. Government Bonds

145,530

McGrath Company Bonds

66,700

What entry, if any, would you recommend be made?(Round answers to 0 decimal places, e.g. 2,500. Creditaccount titles are automatically indented when amount is entered.Do not indent manually. If no entry is required, select “No Entry”for the account titles and enter 0 for theamounts.)

Date

Acct. Titles & Explanation

Debit

Credit

12/31/2014

 

 

 

(Blank)

 

 

 

(d) The U.S. government bonds were sold on July1, 2015, for $119,740 plus accrued interest. Give the proper entry.(Credit account titles are automatically indented whenamount is entered. Do not indent manually. If no entry is required,select “No Entry” for the account titles and enter 0 for theamounts.)

Date

Acct. Titles & Explanation

Debit

Credit

7/1/2015

 

 

 

(Blank)

 

 

 

(Blank)

 

 

 

Blank)

 

 

 

 

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now