Question
Advance Accounting- Please assist me with these journal entries. Thank you so much AMGC is a consulting firm that also offers financial services through its
Advance Accounting- Please assist me with these journal entries. Thank you so much
AMGC is a consulting firm that also offers financial services through its credit division From time to time the company buys and sells securities inending to earn profits on short term differences in price . The following selected to AMGC investment activities during the last quarter of 2013 and and the first month of 2014. The only securities held by AMDG AT October 1 were $30 Million of 10% bonds of KA inc. purchased on May 1 at face value. The company fiscal year ends on December 31
2013 18-Oct Purchased 2 million preferred shares of MV Company for $ 58 Million as a speculative investment to be sold under suitable circumstances 31-Oct Received semiannual interest of $ 1.5 Million from the KA bonds 1-Nov Purchased 10% bonds HE Enterprises at their $ 18 Milliion face value to be held until they mature in 2018. Semiannual interest is payable April 30 and October 31 1-Nov Sold the KA bonds for $28 Million because rising interest rates are expected to cause their fair value to continue to fall 1-Dec Purchased 12 % bonds of HPC at their $ 60 Million face value to be held until they mature in 2028 . Semianual intrest is payable May 31 and November 30 20-Dec Purchaed US Treasury bonds for $ 5.6 million as trading securities hoping to earn profits on their short term differences in prices 21-Dec Purchased 4 million common shares of NXS for $ 44 million as trading securities hoping to earn profits on their short term differences in prices 23-Dec Sold the Treasury bonds for $5.7 million 29-Dec Received cash dividends of $3 million from the MVC preferred shares 31-Dec Recorded any necessary adjusting or closing entry(s) relating to the investments The market price of the MVC preferred shares was $ 27.50 per share and $11.50 per share for the NXS corporation common shares Thefair values of the Bond investments were $58.7 million for HPC and $16.7 million for HE Enterprise 2014 7-Jan Sold the NXS corporation comon shares for $43 million Required: Prepare the appropriate journal entry for each transaction or event
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