2 QS C-7 Accounting for available-for-sale debt securities LO P3 2 points Joum Co. purchased short-term investments in available-for-sale debt securities at a cost of $52.000 cash on November 25. At December 31, these securities had a fair value of $51.000. This is the first and only time the company has purchased such securities. X 02:51:58 1. 2. & 3. Prepare the November 25 entry to record the purchase of debt securities, the December 31 year-end adjusting entry for the securities' portfolio and the April 6 entry when Journ sells 10% of these securities ($5,200 cost) for $6.900 cash. View transaction list eBook Journal entry worksheet Hint Print Record purchase of available-for-sale securities. References Note: Enter debits before credits General Journal Debit Credit Date Nov. 25 Record entry Clear entry View general journal 3 QS C-8 Recording fair value adjustment for avallable-for-sale debt securities LO P3 2 points 8 02-51:38 During the current year, Reed Consulting acquired long-term available-for-sale debt securities on July 1 at a $91.000 cost. At its December 31 year-end, these securities had a fair value of $76.900. This is the first and only time the company purchased such securities. Required: 1. Prepare the July 1 entry to record the purchase of these debt securities. 2. Prepare the year-end adjusting entry related to these securities. eBook View transaction list ed Hint Journal entry worksheet Print Record purchase of available-for-sale securities. References Note: Enter debits before credits Date General Journal Debit Credit Jul 01 Record entry Clear entry View general journal 4 QS C-15 Equity method transactions LO P5 2 points Rowan Co. purchases 100 common shares (40%) of JBI Corp. as a long-term investment for $500,000 cash on July 1. JBI Corp. paid $5,000 in total cash dividends on November 1 and reported net income of $100.000 for the year. (1) - (3) Prepare Rowan's entries to record the purchase of JBI shares, the receipt of its share of JBI dividends and the December 31 year-end adjustment for its share of JBI net income. X 02-50:54 View transaction list eBook Journal entry worksheet A Print References Record the purchase of JBI shares. Note: Enter debits before credits. General Journal Debit Credit Date Jul 01 Record entry Clear entry View general journal