650 Chapter 15 Investments Accounting for short-term of Duke Co, all of which occurred during year 2017 trading securities Exercise 15-2 Prepare journal entries to record the following transactions imvolving the short shares of RIP Company stock at S10 per share On March 22, purchased 1,000 P1 fee. These shares are categorized as trading securities b. On September 1, received a S1.00 per share cash dividend on the RIP i Dr Cash $7.450 .On October 8, sold 500 shares of RIP Co. stock for $15 per share, less a $50 Exercise 15-3 Accounting for trading P1 Brooks Co. purchases various investments in trading securities at a cost of $66 0 2017. (This is its first and only purchase of such securities) At December 31,2017,t fair value of $72,000 1. Prepare the December 31. 2017, year end adjasting entry for the trading 2. Explain how each account in the entry of part I is reported in financial statements Check Q Gain $2,000 3. Prepare the January 3, 2018, entry when Brooks sells a portion of its originally cost $33,000) for $35,000 Prepare journal entries to record the following transactions involving the short a. On June 15, paid $1,000,000 cash to purchase Remedy's s0day short-term debt securitics Exercise 154 Accounting for shon.termof Natura Co, all of which occurred during year 2017. held-to-maturity securitiesa principal), dated June 15, that pay 10% interest (categorized as held-a-maturity secur sin. b. On September 16, received a check from Remedy in payment of the principal and 90 dey i P2 the debt securities purchased in transaction a Prepare journal entries to record the following transactions involving the short-term securitin Exercise 15-5 Accounting for short-termof Krum Co, all of which occurred during year 2017 avaablefor-sale securities a On August l paid S450,000 cash to purchase Houtte's 9% debt securities ($450,000 P3 30, 2017, and maturing January 30, 2018 (categorized as available-for-sale securitiest Exercise 15-6 Transactions in short-term investments of Cancun Corp., all of which occurred during calendar-year 2017. Use the accou S and long term investments Term Investments for any transactions that you determine are short term. P1 P2 P3 b. On October 30, received a check from Houte for 90 days' interest on the debt securities purchae Prepare journal entries to record the following transactions involving both the short-term and long . On February 15, paid $160,000 cash to purchase American General's 90-day short-term which are dated February 15 and pay 10% interest (classified as held-to-maturity). b. On March 22, bought 700 shares of Fran Industries common stock at $51 cash per share pla a5 brokerage fee (classified as long-term available-for-sale securities). c. On May 15, received a check from American General in payment of the principal and 90 days. on the notes purchased in transaction a. d. On July 30, paid S 100,000 cash to purchase MP3 Electronics's 8% notes at par, dated 1djar and maturing on January 30, 2018 (classified as trading securities). e. On September 1, received a $1.00 per share cash dividend on the Fran Industries commn d chased in transaction b t On October 8, sold 350 shares of Fran Industries common stock for $64 cash per share. fee. s. On October 30, received a check from MP3 Electromics for three months' interest on the ase Exercise 15-7 Adjusting available-for securities to fair value P3 chased in transaction d. On December 31. 2017, Reggit Company held the following short-term investmentis a eeriods the December 31, 2017, adjusting entry to report sale available-for-sale securities. Reggit had no short-term investments in its p prior accounting these investments at fair value. Cost Fair Value Verrizano Corporation bonds pitysble Preble Corporation notes paye Lucerne Company common sock $89.500 Check Unrealized loss $9,100 62.900 83100 86.500