I got some great help for my last question and need help on this one. the proble
ID: 2347422 • Letter: I
Question
I got some great help for my last question and need help on this one.the problem says Holly Company invests its excess cash in marketable securities. At the beginning of 2010 it had the following portfolio of investments in available-for-sale securities:
Security
400 Shares of I Company common stock $8,400 $9,400
700 Shares of O Company common stock 23,100 21,700
Totals 31,500 31,100
During 2010, the following transactions occurred:
March 31 Purchased U company 8% bonds with face value of $10,000 for $10,000 plus accrued interest; interest is payable on the bonds each June 30 and December 31
May 17 Sold 200 shares of O Company common stock for $30 per share
June 30 Received the simiannual interest on the U Company bonds
Oct 12 Sold 100 shares of I Company common stock for $24 per share
Dec 31 Received the semiannual interest on the U company bonds and dividends of $1 per share and $1.50 per share on the I and O company common stock, respectively
The December 31 closing market prices were as follows: I company common stock, $25 per share; O company common stock, $31 per share; U company 8% bonds, 101
Prepare journal entries to record the preceding information.
Explanation / Answer
No where does it say anything about $31500 or $31100? I don't understand your answer. Also you are leaving out the Unrealized Increase/Decrease in Value of Available for Sale Securities every time the company sold stock..
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