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On July 1, 2018 Tam Company purchased 3,000 shares of Del Company capital stock as a temporary Investment (trading Securities at $66.50 per share plus

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On July 1, 2018 Tam Company purchased 3,000 shares of Del Company capital stock as a temporary Investment (trading Securities at $66.50 per share plus a commission of $30. On July 15, a 5 per cent stock dividend was received. Tam received a cash dividend of $0.50 per share on August 12, 2018. On November 1, Tam sold all of the shares for $72.20 per share, less a commission of $30. Prepare entries to record all of these transactions in Tam Company's accounts. GENERAL JOURNAL POST REF. Date Account/Description Debit Credit 19 20 Exercise B Key Company purchased 800 shares of Franklin Company stock at a total cost of $ 7,560 on 2010 July 1. At the end of the accounting year (2010 December 31), the market value for these shares was $ 7,360. By 2011 December 31, the market value had risen to $ 7,770. This stock is the only marketable equity security that Key Company owns. The company classifies the securities as available for sale securities. Give the entries necessary at the date of purchase and at 21 2010 December 31, and 2011, GENERAL JOURNAL POST REF. Date Account/Description Debit Credit Sheet1 w e cayout Formulasata Review Mew Develop 11A A Calibri (Body) PETU A 25 Wrap Test r on A Custers H62 x fe Ruiz Company puchased 30 per cent of Sim Company's outstanding common stock for $3,000,000 and uses the equity method of accounting, Sim Company reported net income of $ 640,000 for 2018. On 2018 December 31, Sim Company pold cash dividend of $200,000. In 2019, Sim Company incurred a net loss of $ 65,000. Prepare entries to reflect these 40 events on Ruiz Company's books GENERAL JOURNAL POST REF. Date Account/Description Debit Credit 57 Exercise ZZ On January 1, 2018, Warden decided to invest in the 20 year bonds of Lake Stevens. The bonds pay interest on June 30 and December 31 at 6% annually. The $120,000 of bonds were purchased at 102 plus $80 broker commission. Warden sa intends to hold the bonds until maturity, 59 1. Journalize the purchase of the investment on January 1, 2018 60 2. Journalize the first interest payment on the investment on June 30, 2018. 61. 3. Journalize the maturity of the investment after the final Interest payment GENERAL JOURNAL POST REF. Date Account Description Debit Credit

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