On July 1, 2016, Wolipack Corporation purchased securities which it intends to buy and sell frequently These securities consisted of (a) Todd Corporation 10 , 5 ycar bonds with a face value of $20,000 which were purchased for $18,500 and (b) 300 shares of Cornett Company common stock which were pur...

On July 1, 2016, Wolipack Corporation purchased securities which it intends to buy and sell frequently. These

Question:

On July 1, 2016, Wolipack purchased securities which it intends to buy and sell frequently. These securities consisted of (a) Todd 10%, 5-ycar bonds with a of $20,000 which were purchased for $18,500 and (b) 300 shares of Cornett Company which were purchased at $40 per share. Prepare the July 1 journal entry to record the purchase of these trading securities.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...