Sandhill Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. $38,600 Feb. 1, 2017 April 1 Sharapova Company common stock, $120 par, 240 shares U.S. government bonds, 12%, due April 1, 2027, interest payable April 1 and October 1, 108 bonds of $1,000 par each McGrath Company 12% bonds, par $46,000, dated March 1, 2017, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2037 108,000 July 1 49,680 Your answer is partially correct. Try again. Prepare entries necessary to classify the amounts into proper accounts, assuming that all the securities are classified as available-for-sale. (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.) Account Titles and Explanation Debit Credit Debt Investments Equity Investments Interest Revenue Investment Your answer is partially correct. Try again. Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2017, using the straight-line method. (Round answers to 0 decimal places, e.g. 2,500. 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, 2017 Interest Receivable Interest Revenue Debt Investments LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. The fair values of the investments on December 31, 2017, were: Sharapova Company common stock U.S. government bonds McGrath Company bonds $32,100 128,100 53,600 Your answer is partially correct. Try again. The fair values of the investments on December 31, 2017, were: Sharapova Company common stock U.S. government bonds McGrath Company bonds $32,100 128,100 53,600 What entry, if any, would you recommend be made? (Round answers to 0 decimal places, e.g. 2,500. 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, 2017 Fair Value Adjustment X Unrealized Holding Gain or Loss - Equity (Entry for debt investment) Unrealized Holding Gain or Loss - Equity Fair Value Adjustment (Entry for equity investment) LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. The U.S. government bonds were sold on July 1, 2018, for $129,900 plus accrued interest. Give the proper entry. (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 Jul. 1, 2018 Cash Debt Investments Interest Revenue Gain on Sale of Investments Click if you would like to Show Work for this question: Open Show Work
