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In January 2022, the management of Ivanhoe Company concludes that it has sufficient cash to purchase some short-term investments in debt and stock securities. During
In January 2022, the management of Ivanhoe 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. Jan. 1 Purchased 65 $1,000, 8% TRC bonds for $65,000. Interest is payable annually on December 31. Feb. 1 Purchased 1,240 shares of LAF common stock for $54,560. Mar. 1 Purchased 460 shares of NCL common stock for $18,400. July 1 Received a cash dividend of $0.80 per share on the LAF common stock. Aug. 1 Sold 202 shares of LAF common stock at $43 per share. Sept. 1 Received $2 per share cash dividend on the NCL common stock. Dec. 31 Received the annual interest on the TRC bonds. 31 Sold the TRC bonds for $72,215. At December 31, the fair values of the LAF and NCL common stocks were $40 and $33 per share, respectively. These stock investments by Ivanhoe Company provide less than a 20% ownership interest. the amounts.) ate Account Titles and Explanation Debit Credit Debt Investments 65,000 Cash 65,000 1 Stock Investments 54,560 Cash 54,560 1 Stock Investments 18,400 Cash 18,400 1 Cash 992 Dividend Revenue 992 3.1 Cash Loss on Sale of Stock Investments 1.1 Cash Loss on Sale of Stock Investments Stock Investments 1 Cash Dividend Revenue 31 Cash DOLOMON Interest Revenue (To record interest) 12 31 Cash Debt Investments Gain on Sale of Debt Investments (To record sale of bonds) Post to the accounts Debt Investments and Stock Investments. (If the balance is zero (O) 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 Feb. 1 Aug. 1 Mar. 1 Dec. 31 Bal. Debt Investments Jan. 1 Dec. 31 Dec. 31 Bal
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