Journal Entries

Kaman Company paid $207,000 to purchase a portfolio of debt investments on March 1, 2020. Man- agement's intention is to hold them for less than one year. Management does not intend to hold any debt investments until their maturity in this portfolio. For transactions with more than one debit or credit, enter the accounts in alphabetical order. Required a) Prepare the journal entry to record the purchase of these debt securities. Date Account Title and Explanation Debit Credit Mar 1 Answer Answer Answer Answer To record purchase of investments b) On March 15, 2020, Kaman Company received interest of $1,500 from the debt investments in this portfolio. Prepare the journal entry to record the receipt of interest. Date Account Title and Explanation Debit Credit Mar 15 Answer Answer Answer Answer To record receipt of interest c) The fair value of the portfolio at Kaman Company's year end on March 31, 2020 was $220,000. Pre- pare the journal entry to record the fair value adjustment. Date Account Title and Explanation Debit Credit Mar 31 Answer Answer Answer Answer To record fair value adjustment d) On April 20, 2020, Kaman Company sold half of the investments in this portfolio for $121,500.Prepare the journal entry to record the sale. Date Account Title and Explanation Debit Credit Apr 20 Answer Answer Answer Answer Answer Answer To record sale of half of investments