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During 2018, Dana Company decided to begin investing its idle cash in marketable securities. The information contained below relates to Danas 2018 marketable security transactions:
During 2018, Dana Company decided to begin investing its idle cash in marketable securities. The information contained below relates to Danas 2018 marketable security transactions:
Apr. 1 | Purchased $20,000 face value of Solomon Inc. 12% bonds at par plus accrued interest; interest on the bonds is payable each June 30 and December 31 |
June 30 | Received the semiannual interest on the Solomon bonds. |
Nov. 1 | Purchased $30,000 face value of Edwards Company 11% bonds at par plus accrued interest; interest on the bonds is payable each June 1 and December 1. |
Dec. 1 | Received the interest on the Edwards bonds and sold the bonds for $30,300. |
Dec. 31 | Received the interest on the Solomon bonds. At year-end, the market price of the Solomon bonds was $20,200. |
Required:
1. | Record Danas investment transactions for 2018. |
2. | Show the items of income or loss on temporary investments Dana reports on its 2018 income statement. |
3. | Show the carrying value of Danas investment account on its December 31, 2018, balance sheet. |
Show the carrying value of Danas investment account on its December 31, 2018, balance sheet. Additional Instructions
Dana Company |
Partial Balance Sheet |
December 31, 2018 |
1 | Current assets: |
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