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Kingbird Corp.carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. $37,200 96,000
Kingbird Corp.carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. $37,200 96,000 Feb. 1, 2020 Sharapova Company common stock, $80 par, 160 shares April 1 U.S. government bonds, 10%, due April 1, 2030, interest payable April 1 and October 1,96 bonds of $1,000 par each July 1 McGrath Company 12% bonds, par $53,400, dated March 1, 2020, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2040 57,672 Prepare entries necessary to classify the amounts into proper accounts, assuming that the debt securities are classified as available-for-sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2020, using the straight-line method. (Round answers to 0 decimal places, e.g. 2,500. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31, 2020 The fair values of the investments on December 31, 2020, were: Sharapova Company common stock $28,900 U.S. government bonds 112,700 McGrath Company bonds 59,600 What entry, if any, would you recommend be made? (Round answers to O decimal places, e.g. 2,500. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31, 2020 (Entry for debt investment) (Entry for equity investment) The U.S. government bonds were sold on July 1, 2021, for $108,000 plus accrued interest. Give the proper entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Jul. 1, 2021
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