Refer to the information in RE13 3 Assume that on December 31, 2016, Wolipack received interest on the Todd Corporation bonds as well as a $3 dividend per share interest on the Cornett Company stock Prepare the December 31 journal entries to record the receipt of the interest and the receipt of the...

Refer to the information in RE13-3. Assume that on December 31, 2016, Wolipack received interest on the

Question:

Refer to the information in RE13-3. Assume that on December 31, 2016, Wolipack received interest on the Todd bonds as well as a $3 per share interest on the Cornett Company stock. Prepare the December 31 journal entries to record the receipt of the interest and the receipt of the dividends.
In RE13-3
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
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... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... 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...