Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can anyone help me with this assignment please? Show the calculations if possible. Chapter 15 Assignment Problems LT Investment - non-strategic investment As a long-term
Can anyone help me with this assignment please? Show the calculations if possible.
Chapter 15 Assignment Problems LT Investment - non-strategic investment As a long-term investment, Ellen Co. paid $700,000 (par value) for Nickel Bank bonds, plus $500 transaction fee. The bonds pay 5.5% interest semiannually on September 1 and March 1. Prepare the journal entries for the following transactions. Round all values to the nearest dollar Record the following entries: (1) Purchase on September 1, 2016. (2) Year-end adjusting entry, December 31, 2016. (3) Receipt of semiannual interest payment March 1, 2017. (4) Redemption of the bonds at maturity Date General Journal Account Titles and Explanation Debit Credit Investment - non-strategic investment Prepare general journal entries to record the following transactions for The Chocolate Factory in its first year of operations: (a) On May 4, as a short term investment, purchased 500 shares of Power Corp., paying $55,500. (b) On July 1, received $2.00 per share cash dividend on the Power Corp. shares. (c) On September 15, sold 300 Power Corp. shares for $120 per share. (d) The December 31 fair value of the company's short term investment in Power Corp revealed a $2,000 unrealized gain. Date General Journal Account Titles and Explanation Debit Credit Investment - strategic investment On January 1, Year 1, Froelich Corporation purchased 5,500 shares of SportTech Ltd. as a long-term investment for a total of $206,195. The 5,500 shares represented 30% of the outstanding shares of SportTech. At the end of Year 1, SportTech reported a loss of $66,000 for the year. In Year 2, Froelich had the following long-term investment transactions. Assume Froelich owns 25% of SportTech at December 31, Year 2. Prepare the journal entries to record the transactions for Year 2. Feb 1 Sold 2,000 shares of SportTech for $36.50 per share. Oct 1 SportTech declared an $.80 per share cash dividend to shareholders of record on October 15, payable November 1. Nov 1 Received SportTech cash dividend. Dec 3 SportTeach reported net income of $330,000 for year 2. Date General Journal Account Titles and Explanation Debit CreditStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started