During January 2011, Aragorn Inc. purchased the following securities: During 2011, Aragorn received interest from Mirkwood and
Question:
During 2011, Aragorn received interest from Mirkwood and the U.S. Treasury totaling $3,630. Dividends received on the stock held amounted to $1,760. During November 2011, Aragorn sold 200 shares of the Gimli stock at $17 per share and 250 shares of the Glorfindel stock at $19 per share. Give the journal entries required by Aragorn to record the
(1) Purchase of the debt and equity securities;
(2) Receipt of interest and dividends during 2011; and
(3) Sale of the equity securities duringNovember.
Transcribed Image Text:
Security Classification No. of Shares Total Cost Gimli Corporation stock Legolas International Inc. stock .. Glorfindel Enterprises stock Mirkwood Co. bonds... U.S. Treasury bonds Trading Available for sale Available for sale Held to maturity Trading 500 1,000 2,500 $9.000 22,000 42,500 24,000 11,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 56% (16 reviews)
1 Investment in Trading Securities x Gimli 9000 Investment in Trading Securities x Treasu...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Question Posted:
Students also viewed these Accounting questions
-
The company purchased the following securities during Year 1: On July 23, Year 2, the company sold all of the shares of security B for a total of $9,500. As of December 31, Year 2, the shares of...
-
The company purchased the following securities during Year 1: In Year 2, the company reclassified both of these securities. Security A was reclassified as available for sale; the fair value of...
-
The company purchased the following securities during Year 1: In Year 2, the company reclassified both of these securities. Security A was reclassified as held to maturity; the fair value of security...
-
Asset allocation explains a large portion of a portfolio return. However, the implementation issues involved inthe asset allocation process may reduce the efficiency of the asset allocation strategy,...
-
An instructor who taught two sections of engineering statistics last term, the first with 20 students and the second with 30, decided to assign a term project. After all project shad been turned in,...
-
Many engineering designs must incorporate ways to dissipate energy in the form of heat. Water evaporators are common for this task. (a) What property of water makes it a good material for...
-
E 5-6 Upstream and downstream sales 1. Pam Corporation owns 70 percent of Sun Companys common stock, acquired January 1, 2017. Patents from the investment are being amortized at a rate of $20,000 per...
-
The artisans at Jewelry Junction in Phoenix are preparing to make gold jewelry during a 2-month period for the Christmas season. They can make bracelets, necklaces, and pins. Each bracelet requires...
-
please help with all parts!!! Exercise B-19 (Algo) Using present and future value tables LO C1, P1, P2, P3, P4 For each of the following situations, identify (1) the case as elther (a) a present or a...
-
Richard chooses technique 0 and 2 requiring 10+10-20 efforts and provising 10+11=21 benefits. Hence, 21 is returned as the output Example 2: input1: 3 input2: (10,10,10,10) input3: (10,11,12,15)...
-
The following transactions of Kelsey, Inc., occurred within the same accounting period: (a) Purchased $55,000 U.S. Treasury 6% bonds, paying 102 plus accrued interest of $1,400. In addition, Kelsey...
-
For each of the following independent situations, determine the appropriate accounting method to be used: cost or equity. For cost method situations, determine whether the security should be...
-
Kentucky Grill has computed the net present value for capital expenditures for the Somerset and Whitley City locations using the net present value method. Relevant data related to the computation are...
-
What should be the equivalent units of production for (1) Dept M and (2) Dept. P? Can you please show the solutions and answer. Thanks Problem 1 Lee Gon Mfg. Co has its product processed in two...
-
Moullierat Mfg. is considering a rights offer. The company has determined that the ex-rights price will be $95. The current price is $102 per share, and there are 24 million shares outstanding. The...
-
This question involves hypothesis testing. The following numbers will help you answer these questions. The random variable Z ~N(0, 1) is standard normal. P(Z >1.28).1 P(Z1.65) .05 P(Z1.96) .025 P(Z...
-
Human service organizations require strong and effective leadership. Understanding what qualities make up an effective leader and how these qualities can be cultivated is of critical importance for...
-
18. What is the name of the heat treatment performed on a cold worked sample? 19. What is the percent coldwork of a sample with an initial thickness of 11mm and a final thickness of 7mm? 20. Which...
-
What is an assignment? What is the difference between an assignment and a delegation? LO1
-
Wal-Mart is the second largest retailer in the world. The data file on the disk holds monthly data on Wal-Marts revenue, along with several possibly related economic variables. a) Using computer...
-
The flame color tests used to identify elements often depend on the emission spectrum of the atoms. Strontium compounds produce a bright red color in a flame that is due to an emission line at 641...
-
The financial records of Dunbar Inc. were destroyed by fire at the end of 2012. Fortunately, the controller had kept certain statistical data related to the income statement as presented below. 1....
-
Two accountants for the firm of Allen and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following...
-
The following balances were taken from the books of Parnevik Corp. on December 31, 2012. Assume the total effective tax rate on all items is 34%.InstructionsPrepare a multiple-step income statement;...
-
X Your answer is incorrect. Flounder Consulting Corp. company records revealed the following for the current year: What was the net cash flow from operating activities for the year? $ 0 $ 9 8 0 0...
-
Assume that interest rate parity holds. The U.S. fiveyear interest rate is 0.08 annualized, and the Mexican fiveyear interest rate is 0.05 annualized. Todays spot rate of the Mexican peso is $0.21....
-
find the NSP of a whole life insurance.6 with $100,000 Death benefits, for a female aged 105 years, if i=10%? (use Australian life Tables 2005-07) find the NSP of a whole life insurance.6 with...
Study smarter with the SolutionInn App