Indigo Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions.

Feb. 1, 2014 Sharp Company common stock, $110 par, 200 shares $38,300

April 1 U.S. government bonds, 12%, due April 1, 2024, interest

payable April 1 and October 1,96 bonds of $1,000 par each 96,000

July 1 Grath Company 12% bonds, par $47,300, dated

March 1, 2014, purchased at 104 plus accrued interest,

interest payable annually on March 1, due March 1, 2034 51,084

Instructions

(Round all computations to the nearest dollar.)

(a) Prepare entries necessary to classify the amounts into proper accounts, assuming that all the securities are classified as available-for-sale.

(b) Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2014, using the straight-line method.

Expert Answer

The Fair Values of the investments on December 31, 2020 were

Sharapove Company common stock $28,800

U.S government bonds 130,800

McGarth Company Bonds 52,900

What entry if any would you reccoments ( round your answers to 0 decimal places e.g 2,500)

The Us. Gov bonds were sold on July for 116,700 plus accured interest. give the proper entry