Question 7 --/1 View Policies Current Attempt in Progress Crane Corporation purchased debt investments for $46,000 on January 1, 2020. On July 1, 2020, Crane received cash interest of $2,070. Journalize the purchase and the receipt of interest. Assume that no interest has been accrued. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit --/1 Question 3 View Policies Current Attempt in Progress On April 25, Davis Company buys 4,200 shares of Carter common stock for $94,500. On October 31, Davis sells 600 shares of Carter stock for $16,500. Prepare journal entries for the purchase and sale of the Carter common stock. (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 Apr. 25 Oct. 314 Question 9 --/1 View Policies Current Attempt in Progress Sheridan Company owns 25% of Lauer Company. For the current year, Lauer reports net income of $180,000 and declares and pays a $36,000 cash dividend. Record Sheridan's equity in Lauer's net income and the receipt of dividends from Lauer. (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.) Date Account Titles and Explanation Debit Credit Dec. 31 (To record equity in Lauer's net income) Dec. 31 (To record dividends received) - 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
