Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Landers Inc. had the following transactions involving non-strategic investments during 2014. 2014 Apr. 1 Paid $108,000 to buy a 90-day term deposit, $108,000 principal amount,

Landers Inc. had the following transactions involving non-strategic investments during 2014.

2014
Apr. 1

Paid $108,000 to buy a 90-day term deposit, $108,000 principal amount, 6.5%, dated April 1.

12

Purchased 3,800 common shares of Dofasco Ltd. at $24.25.

June 9

Purchased 2,600 common shares of Power Corp. at $51.00.

20

Purchased 1,100 common shares of Westburne Ltd. at $17.75.

July 1

Purchased for $75,561 a 8.5%, $73,000 Littleton Inc. bond that matures in eight years when the market interest rate was 7.9%. Interest is paid semiannually beginning December 31, 2014. Landers Inc. plans to hold this investment until maturity.

3

Received a cheque for the principal and accrued interest on the term deposit that matured on June 30.

15 Received a $0.95 per share cash dividend on the Dofasco common shares.
28 Sold 1,900 of the Dofasco common shares at $28.00.
Sept. 1 Received a $2.90 per share cash dividend on the Power Corp. common shares.
Dec. 15

Received a $1.45 per share cash dividend on the remaining Dofasco common shares owned.

31 Received the interest on the Littleton bond.
31

The fair values of Landers Inc.s investments on this date were: Dofasco shares, $25.40; Power Corp. shares, $43.15; Westburne shares, $18.05. Assume the fair value and the carrying value of the Littleton bond were equal.

2015
Feb. 16 Sold the remaining Dofasco shares at $28.25.

Required:

Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round yourintermediate and final answers to the nearest whole dollar amount.)

Show how Landers Inc.s investments will appear on its December 31, 2014, balance sheet. (Do not round intermediate calculations.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Creating Value in a Dynamic Business Environment

Authors: Ronald Hilton, David Platt

12th edition

1259969517, 1260566390, 978-1260417043

More Books

Students also viewed these Accounting questions

Question

What is the logit transformation for a probability ?????

Answered: 1 week ago

Question

2. What do the others in the network want to achieve?

Answered: 1 week ago

Question

1. What do I want to achieve?

Answered: 1 week ago