Help Save & Ex OMEWORK-x3-6,8,10-1214,16&17 Chee Exercise 15-6 Transactions in s

Question

Help Save & Ex OMEWORK-x3-6,8,10-1214,16&17 Chee Exercise 15-6 Transactions in shor-term and long-term investments LO P1, P2, P3 a on rebauary i, pad $1600 cash to purchase American Genera's 90-day short-term notes at par which are dated bonpMermh an. babig ondustries common stock at $38 cash per share plus a $120 brokerage fee(classified as and pay 9% interest (classified as held-to-maturity). long-term available-for-sale securities) transaction a short-term notes at par, which are dated February 15 0 brokerage fee (classified as c. On May 15, recelved a check from American General in payment of the principal and 90 days' interest on the notes purchased in d. On July 30, paid S48000 cash to purchase MP3 Electronics' 8% notes at par, dated July 30, 2017, and maturing on January 30, 2018 (classified as trading securities) e. On September f. On October 8, sold 300 shares of Fran Industries common stock for $44 cash per share, less a $100 brokerage fee 9. On October 30, recelved a check from MP3 Electronics for three months' interest on the notes purchased in transaction d 1, received a $0.76 per share cash dividend on the Fran Industries common stock purchased in transaction b Prepare journal entries to record the above transactions involving both the short-term and long-term investments of Cancun Corp, all short term. (Use 360 deys in a year. Do not round your intermediate calculations.) hy transactions that you determine are Journal entry worksheet Prey 40( 11 ??? Next >

Explanation / Answer

S. No. Date Account Title & Explanantion Debit Credit a. 15-Feb Short Term Investment- Held for Maturity $160,000.00 Cash $160,000.00 To record the short term Investment b 22-Mar Long term Investment-Available for Sale $22,920.00 Cash ( 600*38)+120 $22,920.00 To Record Purchase of 600 Share of Fran Industries c 15-May Cash $166,000.00 Interst Income ($160000*15%*3/12) $6,000.00 Short term investment - Held for maturity $160,000.00 To Record the maturity amount and interest income d 30-Jul Short Term investment-Tradin Securities $48,000.00 Cash $48,000.00 To record Short term investment e 01-Sep Cash $456.00 Dividend Income (600 *$0.76) $456.00 To record the receipt of Dividend on 600 Shares f 08-Oct Cash ($44*300-100) $13,100.00 Long term investment - Available for Sale $13,100.00 To record the sale of Fran Indutries 300 share g 30-Oct Cash $960.00 Interest Income (48000*8%*3/12) $960.00 To record the receipt of interest income

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