questions 16.2-16.5

what is the op i nvestime curities he cash for strategic reasons? 4. What are the typical investments 5. Why would a company invest in securities that provide 6. What is the typical stock investment when investing cash for strategic rease Instructions Provide answers for Mr. Taliaferro. ining to debt investments. 00) for $40,000 cash. Interestis E16.2 (LO 1) Jenek Corporation had the following transactions pertaining to debt im 1. Purchased 40 Leeds Co. 95 bonds (each with a face value of $1.000) for $400 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 $33,000 on January 1, 2021. Instructions Journalize the transactions. E163 (LOI) Flynn Company purchased 70 Rinehart Company 6%, 10-year, $1,000 bonds on Januar 2020. for $70,000. The bonds nav interest annually on January 1. On January 1, 2021, after mais interest, Flynn Company sold 40 of the bonds for $38,500. Instructions Prepare the journal entries to record the transactions described above. EIGA LO 21 Financial Statement Hulse Company had the following transactions pertaining stock investments Feb. 1 Purchased 600 shares of Wade common stock (2%) for $7.200 cash. July 1 Received cash dividends of S1 per share on Wade common stock. Sept.1 Sold 300 shares of Wade common stock for $4,300. Dec. 1 Received cash dividends of $1 per share on Wade common stock. Instructions a. Journalize the transactions b. Explain how dividend revenue and the pain loss) on sale should be reported in E16.5LO 2) Nosker Inc. had the following transactions pertaining to investments Jan. 1 Purchased 2.500 shares of Escalante Corporation common stock (39) July 1 Received a cash dividend of $3 per share. Dec. 1 Sold 500 shares of Escalante Corporation common stock for $32,000 Dec. 31 Received a cash dividend of $3 per share. Instructions Journalize the transactions in the income statement ents in common stock (5%) for $152,000 cand stock for $32,000 cash. E16.6 (LO 2) On February 1, Rinchart Company purchased 500 shares (2) y common stock for $32 per share. On March 20, Rinehart Company sol . Rinchart received a dividend of $1.00 per share on April bivens stock for $7.600. On July 28. Rinchart received a div a res (2% ownership) or 0. Rinchart for $32 per share. On any purchased 500 shares og ownership) of Give $7.600. On J of $1.00 per shinchart Company sold 100 shares of God ut received a dividend of $1.25 per ** for $7.00 end of sim 20. Rineh pril 25. On June 15. Rinchan ries to record the trans