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Journal entries - Prepare all lournal entries on the journal paper provided at the end of the exam. You may tear off the lournal paper
Journal entries - Prepare all lournal entries on the journal paper provided at the end of the exam. You may tear off the lournal paper if you'd like. Be sure to put your name or each page - no need to rest them. Enter the question number in the date column of the journal. Skip one row between each transaction. Do not abbreviate account names in the journal - they must appear exactly as they do in the chart of accounts that follows. Enter BLANK if no journal entry is required for a transaction. Cash Building Depreciation Expense Discount on Bond Investment Dividends Revenue Fair Value Adjustment Gain on Sale of Investment * Holding Gain- * Holding Loss- Interest Expense Interest Rate Swap Interest Revenue CHART OF ACCOUNTS Investment in COMPANY NAME Bonds Investment in COMPANY NAME Stock Investment Revenue Notes Payable Loss on Sale of Investment Premium on Bond Investment Reclassification Adjustment - Unrealized Holding Gain - Unrealized Holding Loss - *You must specify what comes after the hyphen in these accounts - it is required to be correct. For all transactions, assume investments are adjusted to fair value only when it is REQUIRED. If not journal entry is required, enter "BLANK" in the journal. Transactions 11 through 15 relate to one another. Prepare the journal entries as necessary. 11. Dakota Co. purchases 6% of Jersey Corp. stock as an investment for $450,000. 12. Jersey Corp. pays dividends of $26,000 to ALL its investors. 13. Jersey Corp. reports net income of $310,000 on 12/30/18. R ad usted EU 14. The fair value of the Jersey Corp. stock investment on 12/31/18 is $432,000. NO J e g 15. Dakota Co. sells all the Jersey Corp. stock for $457,000 on 5/1/19. Transactions 16 through 20 relate to one another. Prepare the journal entries as necessary. 16. Mexico Co. purchases 25% of Vegas Corp. stock as an investment for $720,000. 17. Vegas Corp. pays dividends of $44,000 to ALL its investors. 18. Vegas Corp. reports net income of $360,000 on 12/30/18. 19. The fair value of the Vegas Corp. stock investment on 12/31/18 is $743,000. 20. Mexico Co. sells all the Vegas Corp. stock for $792,000 on 5/1/19. 21 hariah 32
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