ACT201: Chapter 15 Home Work Exercises Exercise 15-4: GIVEN: A) On June 15, Natura Company paid $118,000 cash to purchase Remedy Company's 90-day short-term debt securities ($118,000 principal), dated June 15, that pay 6% interest (categorized as held-to-maturity securities). B) On Sept 16, Natura Company received a check from Remedy Company in payment of the principal and 90 days' interest on the debt securities pruchased in transaction "A" above. REQUIRED: Prepare JEs to record the above transactions involving the short-term securities investments of Natura Company, all of which occurred during year 2017. Exercise 15-8: GIVEN: On December 31, 2017, Lupa Company held the following short-term available-for-sale securities. Lupa Company had no short-term investments prior to the current period. REQUIRED: Prepare your solutions to the table and then prepare the Dec 31, 2017 year-ending adjusting Journal Entry to record the fair value adjustment for these securities. Computation of Fair Value Adjustment Unrealized Fair Value Gain or Loss? Amount Available-for-Sale Securities Cost 72,800 S %24 29,120 $ %2$ 52,416 $ 2$ %24 98,280 $ 79,352 Nintendo Co. stock 27,082 Atlantic bonds payable Kellogg Co. notes payable 49,271 93,366 McDonald's Corp common stock Totals ACT201: Chapter 15 Home Work Exercises Exercise 15-4: GIVEN: A) On June 15, Natura Company paid $118,000 cash to purchase Remedy Company's 90-day short-term debt securities ($118,000 principal), dated June 15, that pay 6% interest (categorized as held-to-maturity securities). B) On Sept 16, Natura Company received a check from Remedy Company in payment of the principal and 90 days' interest on the debt securities pruchased in transaction "A" above. REQUIRED: Prepare JEs to record the above transactions involving the short-term securities investments of Natura Company, all of which occurred during year 2017. Exercise 15-8: GIVEN: On December 31, 2017, Lupa Company held the following short-term available-for-sale securities. Lupa Company had no short-term investments prior to the current period. REQUIRED: Prepare your solutions to the table and then prepare the Dec 31, 2017 year-ending adjusting Journal Entry to record the fair value adjustment for these securities. Computation of Fair Value Adjustment Unrealized Fair Value Gain or Loss? Amount Available-for-Sale Securities Cost 72,800 S %24 29,120 $ %2$ 52,416 $ 2$ %24 98,280 $ 79,352 Nintendo Co. stock 27,082 Atlantic bonds payable Kellogg Co. notes payable 49,271 93,366 McDonald's Corp common stock Totals
