ABC Corporation
Unadjusted Trial Balance
December 31, 2014
	Debit	Credit
Cash	$ 575,232
Short term investments	167,000
Fair value adjustment (Trading)	-
Accounts receivable	190,300
Allowance for doubtful accounts		$ -
Inventory	-
Purchases	350,000
Prepaid insurance	24,600
LT (Debt) investments (HTM)	177,824
Land	75,000
Building	150,000
Accumulated depreciation: building		4,000
Equipment	60,000
Accumulated depreciation: equipment		20,000
Patent	37,500
Accounts payable		75,240
Notes payable		235,000
Income taxes payable		63,800
Unearned rent revenue		36,000
Bonds Payable		800,000
Premium on Bonds Payable		61,771
Common stock		86,000
PIC In Excess of Par-Common Stock		13,000
Retained earnings		-
Treasury stock	49,000
Dividends	41,000
Sales Revenue		792,945
Advertising expense	8,400
Wages expense	67,600
Office expense	21,700
Depreciation expense	24,000
Utilities expense	31,000
Insurance expense	73,800
Income taxes expense	63,800
	$ 2,187,756	$ 2,187,756

ADJUSTMENTS NEEDED:

10	On 7/1/14, ABC sold 12% bonds having a maturity value of $800,000 for $861,771, resulting in an effective yield of 10%. The bonds are
	dated 7/1/14, and mature 7/1/19. Interest is payable semiannually on July 1 and January 1. ABC uses the effective interest method of
	amortization for bond premium or discount. Record the adjusting entry for the accrual of interest and the related amortization on 12/31/14.
	Hint: Develop an abbreviated amortization schedule to accurately determine the interest expense.
11	The following information is available for ABC Corporation at 12/31/14 regarding its investments in stocks of other companies.
		Securities					Cost	Fair Value
		2,200 shares of Toyota Corporation Common Stock					$ 100,000	$ 125,000
		1,100 shares of G.M. Corporation Common Stock					$ 67,000	$ 34,000
							$ 167,000	$ 159,000
	Prepare the adjusting entry (if any) for 2014, assuming the securities are classified as trading.
12	On 1/1/14, ABC Corporation purchased, as a held-to-maturity investment, $200,000 of the 8%, 5-year bonds of Intuit Corporation for $177,824,
	which provides an 11% return. Prepare ABC's 12/31/14 journal entry to reflect the receipt of annual interest and discount amortization.
	Assume the bond investment pays interest annually on 12/31 each year and that effective interest amortization is used.
	Note: Notice that a discount account is not used for this investment. Therefore, for purposes of this adjusting entry, amortize the discount directly to the
	investment account.