Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dreyden Investments completed the following investment transactions during 2018: I only need requirements 2 and 3 as 1 is already completed. thank you!! 0 More

Dreyden Investments completed the following investment transactions during 2018:
I only need requirements 2 and 3 as 1 is already completed. thank you!!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
0 More Info 2018 Jan. 5 Purchased Vince Company's $600,000 bond at face value. Dreyden classified the investment as available-for-sale. The Vince bond pays interest at the annual rate of 10% on June 30 and December 31 and matures on December 31, 2021. Management's intent is to keep the bonds for several years. Received an interest payment from Vince. Received an interest payment from Vince. Adjusted the investment to its current market value of $590,500. Jun. 30 Dec. 31 Dec. 31 Print Done i Requirements X 1. Journalize Dreyden's investment transactions. Explanations are not required. 2. Prepare a partial balance sheet for Dreyden's Vince investment as of December 31, 2018. 3. Prepare a comprehensive income statement for Dreyden Investments for year ended December 31, 2018. Assume net income was $300,000. Print Done Begin by journalizing Dreyden's investment on January 5, 2018. Date Accounts and Explanation Debit Credit 2018 Jan. 5 Available-for-Sale Debt Investments 600,000 Cash 600,000 Purchased investment in bonds. Next, joumalize the receipt of cash interest on June 30, 2018. Date Accounts and Explanation Debit Credit 2018 Jun. 30 Cash 30,000 Interest Revenue 30,000 Received cash interest. Now joumalize the receipt of cash interest on December 31, 2018. Date Accounts and Explanation Debit Credit 2018 Dec. 31 30,000 Cash Interest Revenue 30,000 Received cash interest. Finally, journalize the year-end adjustment, if any. Date Accounts and Explanation Debit Credit 2018 Dec. 31 9,500 Unrealized Holding Loss Available-for-Sale Fair Value Adjustment-Available-for-Sale 9.500 Adjusted available-for-sale debt investment to market value. Ronniremont Dronara onartial halanro choot for rouriante Vinca Investment se af Maramher 21 2018 Choose from any list or enter any number in the innuit fields and then elink Chark Anwar Requirement 2. Prepare a partial balance sheet for Dreyden's Vince investment as of Use the partial balance sheet below to show how to report the investment on Dreyden not select a label or enter a zero.) Dreyden Investments Balance Sheet (Partial) December 31, 2018 Current Assets: Long-term Assets: Stockholders' Equity Accumulated Other Comprehensive Income: Choose from any list or enter any number in the input fields and then click Check A 1 part remaining la nc es Available-for-Sale Debt Investment (at cost) Available-for-Sale Debt Investment (at fair value) Held-to-Maturity Debt Investment (at cost) Held-to-Maturity Debt Investment (at fair value) Trading Debt Investment (at cost) Trading Debt Investment (at fair value) Unrealized Holding Gain-Available-for-Sale Unrealized Holding Gain-Held-to-Maturity Unrealized Holding Gain-Trading Unrealized Holding Loss-Available-for-Sale Unrealized Holding LossHeld-to-Maturity Unrealized Holding Loss-Trading Long-term Assets: Stockholders' Equity Accumulated Other Comprehensive Income: Choose from any list or enter any number in the input fields and th 0 More Info 2018 Jan. 5 Purchased Vince Company's $600,000 bond at face value. Dreyden classified the investment as available-for-sale. The Vince bond pays interest at the annual rate of 10% on June 30 and December 31 and matures on December 31, 2021. Management's intent is to keep the bonds for several years. Received an interest payment from Vince. Received an interest payment from Vince. Adjusted the investment to its current market value of $590,500. Jun. 30 Dec. 31 Dec. 31 Print Done i Requirements X 1. Journalize Dreyden's investment transactions. Explanations are not required. 2. Prepare a partial balance sheet for Dreyden's Vince investment as of December 31, 2018. 3. Prepare a comprehensive income statement for Dreyden Investments for year ended December 31, 2018. Assume net income was $300,000. Print Done Begin by journalizing Dreyden's investment on January 5, 2018. Date Accounts and Explanation Debit Credit 2018 Jan. 5 Available-for-Sale Debt Investments 600,000 Cash 600,000 Purchased investment in bonds. Next, joumalize the receipt of cash interest on June 30, 2018. Date Accounts and Explanation Debit Credit 2018 Jun. 30 Cash 30,000 Interest Revenue 30,000 Received cash interest. Now joumalize the receipt of cash interest on December 31, 2018. Date Accounts and Explanation Debit Credit 2018 Dec. 31 30,000 Cash Interest Revenue 30,000 Received cash interest. Finally, journalize the year-end adjustment, if any. Date Accounts and Explanation Debit Credit 2018 Dec. 31 9,500 Unrealized Holding Loss Available-for-Sale Fair Value Adjustment-Available-for-Sale 9.500 Adjusted available-for-sale debt investment to market value. Ronniremont Dronara onartial halanro choot for rouriante Vinca Investment se af Maramher 21 2018 Choose from any list or enter any number in the innuit fields and then elink Chark Anwar Requirement 2. Prepare a partial balance sheet for Dreyden's Vince investment as of Use the partial balance sheet below to show how to report the investment on Dreyden not select a label or enter a zero.) Dreyden Investments Balance Sheet (Partial) December 31, 2018 Current Assets: Long-term Assets: Stockholders' Equity Accumulated Other Comprehensive Income: Choose from any list or enter any number in the input fields and then click Check A 1 part remaining la nc es Available-for-Sale Debt Investment (at cost) Available-for-Sale Debt Investment (at fair value) Held-to-Maturity Debt Investment (at cost) Held-to-Maturity Debt Investment (at fair value) Trading Debt Investment (at cost) Trading Debt Investment (at fair value) Unrealized Holding Gain-Available-for-Sale Unrealized Holding Gain-Held-to-Maturity Unrealized Holding Gain-Trading Unrealized Holding Loss-Available-for-Sale Unrealized Holding LossHeld-to-Maturity Unrealized Holding Loss-Trading Long-term Assets: Stockholders' Equity Accumulated Other Comprehensive Income: Choose from any list or enter any number in the input fields and th

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Guide To Risk Based Internal Audit System In Banks

Authors: CA Shiva Chaudhari

1st Edition

1947498649, 978-1947498648

More Books

Students also viewed these Accounting questions