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Alpha Company purchased a $1,000, 5 years, 6% bond on July 1, 2019 for $940. Interest is paid semi-annually on June 30 and Dec ember
- Alpha Company purchased a $1,000, 5 years, 6% bond on July 1, 2019 for $940. Interest is paid semi-annually on June 30 and Dec ember 31. The straight line method of amortization is used for both premiums & discounts. Use this information to prepare the adjusting General Journal entry (without explanation) for the six-months ended December 31, 2019. If no entry is required then write "No Entry Required."
- On January 2, 2017, Alpha Company purchased 10,000 shares of the stock of Zulu Company, and did not obtain significant influence.The investment is intended as a long-term investment.The stock was purchased for $10 per share, and represents a 10% ownership stake.Zulu Company made $25,000 of net income in 2017, and paid dividends of $10,000 on December 15, 2017.On December 31, 2017, Zulu Company's stock was trading on the open market for $12 per share at the end of the year.Use this information to determine the dollar amounts that should be reported by Alpha Company during 2017 for the following items:
1. Dividend Income (I think this is $1000?)
2. Unrealized Gain/Loss - OIC (If a loss, enter the amount with dollar sign inside of brackets)
3. Available-for-Sales Securities
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