Question
l. Purchased $90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of $375. The bonds
l. Purchased $90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of $375. The bonds are classified as a held-to-maturity long-term investment.
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m. Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (g).
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n. Received a dividend of $0.60 per share from the Solstice Corp. investment in (f).
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o. Sold 1,000 shares of Solstice Corp. at $45, including commission.
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p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method.
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q. Accrued interest for three months on the Dream Inc. bonds purchased in (l).
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r. Pinkberry Co. recorded total earnings of $240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income.
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s. The fair value for Solstice Corp. stock was $39.02 per share on December 31, Year 1. The investment is adjusted to fair value, using a valuation allowance account. Assume that Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero.
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Oct 1 2016 InvestmentsDream Inc Bonds 90000 Interest Receivable 375 Cash 90375 Oct 7 2016 Cash 26...
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
