Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Show entries exteti TESTING YOUR KNOWLEDGE (4) and work CHAPTER 17: INVESTMENTS The Portland Company was formed on January 1. 2011. Several debt and equity
Show entries exteti TESTING YOUR KNOWLEDGE (4) and work CHAPTER 17: INVESTMENTS The Portland Company was formed on January 1. 2011. Several debt and equity been made since the company was formed, as follows: tral debt and equity investments have Number of Bonds: Stated Purchase common Name of Face Interest Maturity shares Cost at date Date Company Value Date purchased of purchase 201 1-Apr DJH, Inc. $ 90,000 4% 11/1/15 $ 93.300 28-Jun Newark Co. 250 19,500 11-Nov Rivera, Inc. 500 8,500 20x2 2-Apr Sherwood Co. 600 37,200 40,800 1-Oct Grey, Inc. $ 250,000 3% 10/1/X6 246,160 245,000 $ 404,660 $ 406,800 Additional information: 1) The purchase price of each of the bond investments does NOT include accrued interest. The DJH, Inc. bonds pay semiannual interest on May 1 and November 1. 3) The Grey, Inc. bonds pay semiannual interest on April 1 and October 1. 4) Straight-line amortization is used where appropriate for any premiums or discounts. Amortization entries are recorded once a year, at the end of the fiscal year. 5) December 31st is the fiscal year-end for the Portland Company. $ 118,700 6) The total fair value of all investments as of 12/31/x1 was: 7) Assume all appropriate entries were recorded properly since the company was formed. 8) None of the investments have been sold as of 12/31/x2. REQUIRED: 1) Assume all investments were purchased for the TRADING PORTFOLIO a) Prepare all appropriate adjusting entries at 12/31/x2. b) Show the appropriate balance sheet presentation for the Trading Portfolio at 12/31/x2. 2) Assume all investments were purchased for the AVAILABLE-FOR-SALE PORTFOLIO a) Prepare all appropriate adjusting entries at 12/31/x2. b) Show the appropriate balance sheet presentation for the Available-for-Sale Portfolio at 12/31/x2
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started