Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kirkland Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt securities. August 2 Purchased
Kirkland Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt securities. August 2 Purchased Verizon bonds for $14,000. September 7 Purchased Apple bonds for $39,000. september 12 Purchased Mastercard bonds for $24,000. october 21 Sold some of its Verizon bonds that had cost $2,200 for $2,300 cash. October 23 Sold some of lts Apple bonds that had cost $19,000 for $19,400 cash. November 1 Purchased Walmart bonds for $44,000. December 10 Sold all of its Mastercard bonds for $22,000 cash. Required: August 2 Purchased Verizon bonds for $14,000. September 7 purchased Apple bonds for $39,000. september 12 Purchased Mastercard bonds for $24,000. october 21 sold some of its Verizon bonds that had cost $2,200 for $2,300 cash. october 23 sold some of lts Apple bonds that had cost $19,000 for $19,400 cash. November 1 purchased walmart bonds for $44,000. December 10 sold al1 of its Mastercard bonds for $22,000 cash. Required: 1. Prepare journal entries to record these transactions. 2. Prepare a table to compare the year-end cost and fair values of its trading debt securities. Year-end fair values: Verizon, $12,500; Apple, $24,000; and Walmart, $41,000. 3. Prepare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities. Prepare journal entries to recoro tnese transactions. Complete this question by entering your answers in the tabs below. Prepare a table to compare the year-end cost and fair values of its trading debt securities. Year-end fair values: Verizon, $12,500; Apple, $24,000; and Walmart, $41,000. Complete this question by entering your answers in the tabs below. repare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities. Journal entry worksheet Record the year-end adjustment to fair value, if any. Note: Enter debits before credits
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started