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Record the required adjusting entries at the end of 2019 Record all the journal entries for 2020 ( including adjusting entries ) What will appear
Record the required adjusting entries at the end of 2019
Stark company is a new corporation which started its operation at the beginning of 2019. This company started its main operation as a merchandising firm in the Northside of the country. You are the financial manager for this company and the board of directors asked you to start and investment program in order to achieve adequate return by using the available extra cash. You have summarized the following transactions as related to the company investing activities during the years of 2019 and 2020: During 2019: during January 2019 the company purchased 13,000 shares of Lannister company for $15 per share plus $200 commission which the company intended to actively trade. during February 2019 the company purchased 500 shares of Dandarion company for $16,000 for active trading. during April 2019 the company purchased 8,000 shares of Arya company by paying $468,000 which were purchased to meet a legal requirement. During 2020: the company purchased $16,000, 3 years 10% bond by paying $15,231.408. This bond yields a market rate of 12%. The company want to keep this investment and collect the contractual cash flows. Interest on this investment is received at the end of Record all the journal entries for 2020 ( including adjusting entries )
What will appear in the statement of financial position as related to these investments at the end of 2020
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