Question
1/ On February 15, Jewel Company buys 8,500 shares of Marcelo Corp. common stock at $29.13 per share plus a brokerage fee of $400. The
1/ On February 15, Jewel Company buys 8,500 shares of Marcelo Corp. common stock at $29.13 per share plus a brokerage fee of $400. The stock is classified as available-for-sale securities. This is the companys first and only investment in available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.20 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $30.10 per share less a brokerage fee of $250. The balance in the investment account on April 16 is:
Multiple Choice
$247,605.
$248,005.
$237,405.
$237,805.
$237,555.
2/ Landmark buys $370,000 of Schroeter Company's 6%, 5-year bonds payable at par value on September 1. Interest payments are made semiannually on March 1 and September 1. The journal entry Landmark should record to accrue interest earned at year-end December 31 is (Do not round your intermediate calculations):
Multiple Choice
Debit Cash $11,100, credit Interest Revenue $11,100.
Debit Interest Revenue $7,400, credit Interest Receivable $7,400.
Debit Interest Receivable $7,400, credit Interest Revenue $7,400.
Debit Interest Receivable $11,100, credit Interest Revenue $11,100.
Debit Cash $7,400, credit Interest Revenue $7,400.
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