Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Quiz #2 i Saved Help Save & Exit 17 The following are the non-strategic investment transactions of Wiki Garden Tool Inc. Assume each bond acquired

image text in transcribed
Quiz #2 i Saved Help Save & Exit 17 The following are the non-strategic investment transactions of Wiki Garden Tool Inc. Assume each bond acquired is purchased with the intention to actively trade. 2023 Feb. 1 Paid $128,000, plus $200 in transaction fees to purchase a $132,000, four-year, 3.5% bond payable of Capital Inc. dated Feb. 1. Interest is paid semiannually beginning August 1. 15 Mar. 29 Bought 108,000 common shares of Regina Inc. for a total of $92,448, plus paid an extra $500 for transaction points fees. May 7 Regina Inc. 's board of directors declared a total dividend of $533,000 regarding the total 3,500,000 shares issued and outstanding. The date of record is May 30, payable June 15. 01:09:48 June 1 Paid $147, 000 including $500 in transaction fees to purchase a five-year, 6.5%, $144,000 bond payable of Yates Corporation. Interest is paid annually each May 30. 15 Received a cheque regarding the dividends declared on May 7. Aug. 1 Received a cheque from Capital Inc. regarding semiannual interest. 1 Sold the Capital Inc. bond at 98. 17 Purchased 83, 000 Tech Inc. common shares at $7.60 plus $400 in transaction fees. eBook Dec. 1 Sold 83,000 of the Regina Inc. shares at $0.95 and incurred $250 in transaction fees. 31 Accrued interest on the Yates bond. Fair values of the equity securities on this date were Regina, $1.05; Tech Inc., $6.30. Assume that the carrying value of the Yates bond was equal to its fair value. 2024 May 30 Received a cheque from Yates Corporation regarding annual interest. Prepare entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations and round your final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 2 3 5 6 8 12 Record the purchase of $132,000, 4-year, 3.5% bond to be held as an Investment; interest paid semiannually each May 30. Note: Enter debits before credits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Kin Lo, George Fisher

3rd Edition Vol. 1

133865940, 133865943, 978-7300071374

Students also viewed these Accounting questions