Question 14 --/1 View Policies Current Attempt in Progress Pincher Company purchased 50 Issac Company 12%, 10-year, $1,000 bonds on January 1, 2020, for $50,000. The bonds pay interest semiannually on January 1. On January 1, 2021, after receipt of interest, Pincher Company sold 30 of the bonds for $28,300. Prepare the journal entries to record the transactions described above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020 Dec. 31, 2020 (To record interest revenue) (To record sale of bonds) Question 17 --/1 View Policies Current Attempt in Progress Carla Vista Corporation had the following transactions pertaining to debt investments. 1. Purchased 40 8%, $1,550 Leeds Co. bonds for $62,000 cash. Interest is payable annually on January 1, 2020. 2. Accrued interest on Leeds Co. bonds on December 31, 2020. 3. Received interest on Leeds Co. bonds on January 1, 2021. 4. Sold 30 Leeds Co. bonds for $51,150 on January 1, 2021. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.) No. Date Account Titles and Explanation Debit Credit 1. 3. - Your answer is partially correct. Some of Blossom Corporation's investments in debt securities are classified as trading securities and some are classified as available-for-sale. The cost and fair value of each category at December 31, 2020, were as follows. Cost Fair Value Unrealized Gain (Loss) $(12,000) $4,000 Trading securities Available-for-sale securities $95,000 $58,000 $83,000 $62,000 At December 31, 2019, the Fair Value Adjustment-Trading account had a debit balance of $2,000, and the Fair Value Adjustment-Available-for-Sale account had a credit balance of $6,000. Prepare the required journal entries for each group of securities for December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Debit Credit No. Account Titles and Explanation Trading securities: 1. Unrealized Gain or Loss-Income 14000 Fair Value Adjustment-Trading 14000 Available-for-sale securities: 2. Fair Value Adjustment-Available-for-Sale 2000 Unrealized Gain or Loss-Equity 2000
