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Instructions General Journal Shaded cells have feedback are journal entries to the transactions At the end of 2018, Hodge Company prepared the following schedule of
Instructions General Journal Shaded cells have feedback are journal entries to the transactions At the end of 2018, Hodge Company prepared the following schedule of investments in trading debt securities (all of which were acquired at par value): Wournal Instructions Company 12/31/2018 Book Value 12/31/2018 Fair Value Thompson Company $75,000 $74,200 oes grading work? PAGE 1 Stevens Company 40,000 43,100 GENERAL JOURNAL Score: 116/125 Totals $115,000 $117.300 POST. REF. DEBIT CREDIT DATE ACCOUNT TITLE Jul. 1 Investment in Trading Securities 1 100,000.00 During 2019, the following transactions occurred: Cash 100,000.00 July 1 Oct 11 Cash 75,800.00 Loss on Sale of Trading Securities 1,200.00 Investment in Trading Securities 74,200.00 Oct. 11 Purchased Little Company debt securities for $100,000 (which is equal to par value). The securities carry an annual interest rate of 10%, mature on December 31, 2021, and pay interest seminannually on July 1 and December 31. Sold all of the Thompson Company securities for $73,000 plus interest of S2,800. Received interest of $5,000 on the Stevens Company and Little Company debt securities, and the following yearend total market values were available: Stevens Company debt securities, $45,000 Little Company debt securities, 198,000. Interest Income 2,800.00 Dec. Dec 31 Cash 5,000.00 31 Interest Income 5,000.00 Dec. 31 Unrealized Holding Gain/Loss: Trading Securities Investment in Trading Securities Required: 1. Prepare journal entries to record the proceding information 2. Next Level If Terry uses IFRS, how would the accounting for investments be different from U.S. GAAP? Points: 22.27 / 24
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