now.com/ph/LORASIGULAR ASSIGNMUUMIVURUGURUA SESSI O rogress ranse Calculator Available-for-sale Securities When accounting for an investment in available for sale securities, Os interest and dividend income are included in net income of the current period. Ob unrealized holding gains and losses resulting from changes in the fair value of the securities are included in net income of the current period Oc. gains and losses on sales of investments are reported as a component of other comprehensive income of the current period. Od. all of the choices are correct. Debt Securities For investments in held-to-maturity debt securities: 1. Unrealized holding gains and losses are disclosed in the notes to the financial statements. II. Interest income and realized gains and losses on sales are included in net income. Oa. I only. Ob. II only. c. I and II. Od. Neither I nor II. Instructions On January 1, 2018. Gatrong Corporation purchased 12%, 5-year Fleming Corporation bonds with a face value of $200,000. It expects to hold these bonds until maturity The bonds pay interest semarnually on June 30 and December 31. Gatrong paid $215,443, a price that yields a 10% effective annual interest rate Required: Prepare the journal entry of Gatrong to record the purchase of the bonds. Refer to the Chart of Accounts exact wording of the answer choices for Instructions General Journal Prepare the journal entry of Gatrong to record the purchase of the bonds on January 1. Refer to the Chart of Accounts exact wording of the answer entries PAGE 1 GENERAL JOURNAL ACCOUNT TITLE POST. REF DEBIT CREDIT DATE Jun. 30 Cash 10,772.15 Interest Income 10,772.15 now.com/ph/LORASIGULAR ASSIGNMUUMIVURUGURUA SESSI O rogress ranse Calculator Available-for-sale Securities When accounting for an investment in available for sale securities, Os interest and dividend income are included in net income of the current period. Ob unrealized holding gains and losses resulting from changes in the fair value of the securities are included in net income of the current period Oc. gains and losses on sales of investments are reported as a component of other comprehensive income of the current period. Od. all of the choices are correct. Debt Securities For investments in held-to-maturity debt securities: 1. Unrealized holding gains and losses are disclosed in the notes to the financial statements. II. Interest income and realized gains and losses on sales are included in net income. Oa. I only. Ob. II only. c. I and II. Od. Neither I nor II. Instructions On January 1, 2018. Gatrong Corporation purchased 12%, 5-year Fleming Corporation bonds with a face value of $200,000. It expects to hold these bonds until maturity The bonds pay interest semarnually on June 30 and December 31. Gatrong paid $215,443, a price that yields a 10% effective annual interest rate Required: Prepare the journal entry of Gatrong to record the purchase of the bonds. Refer to the Chart of Accounts exact wording of the answer choices for Instructions General Journal Prepare the journal entry of Gatrong to record the purchase of the bonds on January 1. Refer to the Chart of Accounts exact wording of the answer entries PAGE 1 GENERAL JOURNAL ACCOUNT TITLE POST. REF DEBIT CREDIT DATE Jun. 30 Cash 10,772.15 Interest Income 10,772.15
