Swartz Inc. enters into the following transactions during 2014: July 1: Paid $10,000 to acquire on the
Question:
Swartz Inc. enters into the following transactions during 2014:
July 1: Paid $10,000 to acquire on the open market $10,000 face value of Gallatin bonds.
The bonds have a stated annual interest rate of 6% with interest paid semiannually on June 30 and December 31. The bonds mature in 5½ years.
Oct. 23: Purchased 600 shares of Eagle Rock common stock at $20 per share.
Nov. 21: Purchased 200 shares of Montana preferred stock at $30 per share.
Dec. 10: Received dividends of $1.50 per share on the Eagle Rock stock and $2.00 per share on the Montana stock.
Dec. 28: Sold 400 shares of Eagle Rock common stock at $25 per share.
Dec. 31: Received interest from the Gallatin bonds.
Required
Prepare all necessary journal entries on Swartz’s records to account for its investments during 2014.
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... 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...
Step by Step Answer:
Journal 2014 ...View the full answer
Financial Accounting The Impact on Decision Makers
ISBN: 978-1285182964
9th edition
Authors: Gary A. Porter, Curtis L. Norton
