In January 2019, the management of Oriole Company concludes that it has sufficient cash to purchase some short-term investments in debt and stock securities. During the year, the following transactions occurred. Purchased 1215 shares of LAF common stock for $54675. Purchased 550 shares of NCL common stock for $18700. Purchased 64 $1,000, 9% TRC bonds for $64000. Interest is payable semiannually on April 1 and October 1. Received a cash dividend of $0.80 per share on the LAF common stock. Sold 207 shares of LAF common stock at $44 per share. Received $2 per share cash dividend on the NCL common stock. Received the semiannual interest on the TRC bonds. Sold the TRC bonds for $77548. Feb. 1 Mar. 1 Apr. 1 July 1 Aug. 1 Sept. 1 Oct. 1 Oct. 1 At December 31, the fair values of the LAF and NCL common stocks were $41 and $27 per share, respectively. These stock investments by Oriole Company provide less than a 20% ownership interest. Journalize the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Credit Debit Aug. 1 To record interest) To record sale of bonds) Post to the accounts Debt Investments and Stock Investments. (If the balance is zero (0) select date from the drop down and enter O for the amount in the column that represents the normal balance for the account.) Stock Investments Debt Investments Prepare the adjusting entry at December 31,2019,to report the investments at fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date Dec. 31 eTextbook and Media List of Accounts Show the balance sheet presentation of investment securities at December 31,2019. Orlole Company (Partial) Balance Sheet In January 2019, the management of Oriole Company concludes that it has sufficient cash to purchase some short-term investments in debt and stock securities. During the year, the following transactions occurred. Purchased 1215 shares of LAF common stock for $54675. Purchased 550 shares of NCL common stock for $18700. Purchased 64 $1,000, 9% TRC bonds for $64000. Interest is payable semiannually on April 1 and October 1. Received a cash dividend of $0.80 per share on the LAF common stock. Sold 207 shares of LAF common stock at $44 per share. Received $2 per share cash dividend on the NCL common stock. Received the semiannual interest on the TRC bonds. Sold the TRC bonds for $77548. Feb. 1 Mar. 1 Apr. 1 July 1 Aug. 1 Sept. 1 Oct. 1 Oct. 1 At December 31, the fair values of the LAF and NCL common stocks were $41 and $27 per share, respectively. These stock investments by Oriole Company provide less than a 20% ownership interest. Journalize the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Credit Debit Aug. 1 To record interest) To record sale of bonds) Post to the accounts Debt Investments and Stock Investments. (If the balance is zero (0) select date from the drop down and enter O for the amount in the column that represents the normal balance for the account.) Stock Investments Debt Investments Prepare the adjusting entry at December 31,2019,to report the investments at fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date Dec. 31 eTextbook and Media List of Accounts Show the balance sheet presentation of investment securities at December 31,2019. Orlole Company (Partial) Balance Sheet
