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PLEASE HELPPPP Problem 1 - HTM/AFS Investments (20 points) Barzetti had no investments prior to the current year. It had the following transactions involving available
PLEASE HELPPPP Problem 1 - HTM/AFS Investments (20 points) Barzetti had no investments prior to the current year. It had the following transactions involving available for sale and held to maturity securities during the year. The stock purchases are considered short-term available-for-sale securities. Prepare Barzetti's journal entries to record the transactions and events associated with the investment purchases. Apr. 18 Purchased 5,000 shares of Lacy Co. stock at $26.50 per share plus a $350 brokerage fee. May 01 Purchased $200,000 of Butcher's 7% two-year bonds payable at par value. Interest payments are paid semiannually on November 1 and May 1 It is the company's intent to hold the bonds until maturity. Jun 10 Purchased 4,000 shares of SubCo stock at 548 25 plus a 5325 brokerage fee Nov. 01 Received a check for the first semiannual interest payment on the Butcher's bonds Nov. 15 Received a 5065 per share cash dividend on the Lacy Co. shares. Nov. 30 Sold 2,000 shares of Lacy Co. stock at $29 less a $300 brokerage fee. Dec 15 Received a 51.10 per share cash dividend on the SubCo shares Dec 20 Received a 5.075 per share cash dividend on the remaining Lacy Co. shares Dec 31 Prepare an adjusting entry to record the fair value adjustment on the available for sale securities. At December 31, the Lacy Co stock has a fair value of $28 per share, and the Subco stock has a fair value of $49.50 per share
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