Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. On February 15, paid $130,000 cash to purchase GMI's 90-day short-term notes at par which are dated February 15 and pay 7% Interest (classified

image text in transcribed
image text in transcribed
image text in transcribed
a. On February 15, paid $130,000 cash to purchase GMI's 90-day short-term notes at par which are dated February 15 and pay 7% Interest (classified as held-to-maturity) b. On March 22, bought 850 shares of Fran incorporated common stock at $32 cash per share. Cancun's stock Investment results in it having an insignificant influence over Fron c. On May 15, received a check from GMI in payment of the principal and 90 days' Interest on the notes purchased in part a d. On July 30. pald $39,000 cash to purchase MP Incorporated's 6%, six-month notes ot par, dated July 30 (classified as trading securities) e. On September 1, received a $0.48 per shore cash dividend on the Fran Incorporated common stock purchased in part b f. On October 8, sold 425 shares of Fran Incorporated common stock for $38 cash per share 9. On October 30, received a check from MP Incorporated for three months Interest on the notes purchased in part de Prepare journal entries to record the above transactions involving both the short-term and long-term investments of Cancun Corporation all of which occurred during the current year. (Use 360 days in a year. Do not round your intermediate calculations. Round your answers to the nearest whole dollar.) 1 On February 15, paid $130,000 cash to purchase GMI'S 90-day short-term notes at par, which are dated February 15 and pay 7% interest (classified as held-to-maturity). 2. On March 22, bought 850 shares of Fran Incorporated common stock at $32 cash per share. Cancun's stock investment results in it having an insignificant influence over Fran. 3 3 On May 15, received a check from GMI in payment of the principal and 90 days' interest on the notes purchased in part a. 4 On July 30, paid $39,000 cash to purchase MP Incorporated's 6% , six-month notes at par, dated July 30 classified as trading securities 4 On July 30, paid $39,000 cash to purchase MP Incorporated's 6%, six-month notes at par, dated July 30 (classified as trading securities). 5 On September 1, received a $0.48 per share cash dividend on the Fran Incorporated common stock purchased in part b. 6 On October 8, sold 425 shares of Fran Incorporated common stock for $38 cash per share. 7 On October 30, received a check from MP Incorporated for three months' interest on the notes purchased in part d

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

Students also viewed these Accounting questions