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please answer everything! i beg you Entries for Investment in Bonds, Interest, and Sale of Bonds Gonzalez Company acquired $163,800 of Walker Co., 8% bonds
please answer everything! i beg you
Entries for Investment in Bonds, Interest, and Sale of Bonds Gonzalez Company acquired $163,800 of Walker Co., 8% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Gonzalez Company sold $42,000 of the bonds for 96. Journalize entries to record the following in Year 1: For a compound transaction, if an amount box does not require an entry, leave it blank. a. The initial acquisition of the bonds on May 1. May 1 b. The semiannual interest received on November 1. Nov. 1 c. The sale of the bonds on November 1. Nov. 1 d. The accrual of $1,624 interest on December 31. Dec. 31 Times interest earned The following data were taken from recent annual reports of Caliber Company, which operates a low-fare airline service to more than 50 cities in the United States: Interest expense Income before income tax Current Year $59,000 283,200 Preceding Year $64,000 198,400 a. Determine the times interest earned ratio for the current and preceding years. Round to one decimal place. Current year Preceding year Balance Sheet Presentation of Available-for-Sale Investments During Year 1, its first year of operations, Galileo Company purchased two available-for- sale investments as follows: Security Shares Purchased cost Hawking Inc. 600 $21,300 Pavlov Co. 1,630 30,155 Assume that as of December 31, Year 1, the Hawking Inc. stock had a market value of $42 per share and the Pavlov Co. stock had a market value of $33 per share. Galileo Company had net income of $165,200 and paid no dividends for the year ending December 31, Year 1. All of the available-for-sale investments are classified as current assets. a. Prepare the Current Assets section of the balance sheet presentation for the available-for-sale investments. Galileo Company Balance Sheet (selected items) December 31, Year 1 Assets Current Assets: Available for Sale Investments, at Cost 25.200 Plus Valuation Allowance for Available for Sale Investments 1 790 x 289 Feedback b. Prepare the Stockholders' Equity section of the balance sheet to reflect the earnings and unrealized gain (loss) for the available-for-sale investments. Galileo Company Balance Sheet (selected Stockholders' Equity items) December 31, Year 1 Stockholders' Equity Retained Earnings $ 3.900 x Unrealized Gain (Loss) on Available for Sale Investments 1615 Step by Step Solution
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