Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In January 2022. the management of Springheld Corporation, a publicly-traded company, decides that it has sufficient cash to purchase some debt and equity securities to

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
In January 2022. the management of Springheld Corporation, a publicly-traded company, decides that it has sufficient cash to purchase some debt and equity securities to be held as trading investments. During the year, the following transactions occurred. Feb. 1 Mar. 1 Apr. 1 July 1 Purchased 1.200 shares of NJF common shares for $51,600, Purchased 500 shares of SEK common shares for $19,000 Purchased 65 $1.000,8% CRT bonds for $66,100. Interest is receivable semi-annually on April 1 and October 1, Received a cash dividend of $0.70 per share on the NJF common shares Sold 180 shares of NJF common shares at $37.00 per share, Received $2 per share cash dividend on the SEK common shares Received the semi-annual interest on the CRT bands. Aug. 1 Sept. 1 Oct 1 Oct 1 Sold the CRT bonds for $70.930. At December 31, Springfield's fiscal year end, the fair values of the NJF and SEK common shares were $36 and 528 per share, respectively WIRD. WE WERE Chery the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit Fob 1 Trading luwestments 51.600 Cash 51.600 Mars Trading Investments 19.000 Cash 19.000 Apr 1 Bonds Payable 66.100 Cash 66.100 July 1 Cashi 940 Dividend Income 840 Aug 1 Cash 8680 28 Dividend income 840 Aug Cash 6660 Resized Loss on Trading Investments 180 Trading Investments 6840 Sept. 1 Cash 1000 Dividend income 1000 12600 Oct 1 Cash Interest income 2600 (To record receipt of interest on CRT bonds) Oct 1 Cash 70.930 Interest Income 2600 (To record receipt of interest on CRT bonds) Oct. 1 Cash 70.930 Revenue from Investment in Associates 1920 Bonds Payable 66.100 INTE (To record sale of CRT bonds.) Dec 31 Unrealized Loss on Trading Investments 23552 Trading Investments 23552 Attempts: 1 of 2 used Submit Answer sire for Later Using multiple attempts will impact your score. 28 A

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Intermediate Accounting IFRS

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

3rd edition

1119372933, 978-1119372936

Students also viewed these Accounting questions

Question

i need 3 8 7 .

Answered: 1 week ago