Smoke, Inc., a calendar year corporation, had the attached transactions in debt and equity securities during 20X4. Prepare all general journal entries required for Smoke, Inc.'s investments for 20X4. Be sure to show all appropriate computations. Indicate the amounts and description of those amounts that would be shown on Smoke's income statement and balance sheet for the year ending December 31, 20X4. EQUIRED: (1) (2) SMOKE, INC. LIST OF SECURITIES PURCHASED ON JANUARY 1, 20X4 Trading Securities Security Quantity Unit Price Broker's Fees Timidity Co. Common Stock (shares) Timidity Co. Common Stock Warrants Timidity Co. 8% Convertible Preferred Stock, $50 par value 10,000 S 5,000 $ 10,000 S 48.00 12.00 55.00 2% None 190 Available For Sale Securities Security Quantity None 5,000 8.00 Alpha, Inc. Common Stock (shares) Alpha, Inc. Convertible Debenture Bonds, 8% coupon rate, mature on 2/31X8, pay interest semiannually on 6/30 and 12/31 (each bond has a $1,000 face value) 100 600,000 200,000 None S 300 S 250 S 1.00 Amtek, Inc. Common Stock (shares) Geneswitch, Inc. Common Stock (shares) S 3.00 Held To Maturity Securities Security Quantity Unit Price Broker's Fees Risky Business, Inc. Debenture Bonds, l 0% coupon rate, mature on 1 2/31 /Y3. pay interest annually on 1031 with a yield to maturity of i 5% ($1,000 face 749 plus accrued interest 200 None value SMOKE, INC. DETAIL INFORMATION RELATING TO SECURITIES INVESTMENTS FOR YEAR ENDING DECEMBER 31, 20X4 Date Jan Mar. 1 Received the semiannual Apr. Explanation he securities listed above were purchased for cash and classified as indicated. Sold 5,000 common shares of Timidity Co. at $68 per share less a $150 broker Received the semiannual interest on the Alpha, Inc. bonds and recorded straight lind dividend on the preferred shares of Timidity Co commission amortization of the discount or premium for the semiannual period Changed intention regarding the 100,000 common shares of Geneswitch, Inc. and eclassified them as Trading Securities when the shares were trading at $2 each. Aug. 15 Sept. 1 Received the semiannual dividend on the Timidity Co. preferred shares Oct. 31 Received the annual interest on the Risky Business, Inc. bonds and recorded Dec. 31 Received the semiannual interest on the Alpha, Inc. bonds and recorded the Dec. 31 Recorded all appropriate adjusting entries for investments, using previous amortization of the discount or premium using the effective interest method and the yield to maturity rate appropriate amortization of discount or premium information and the following end of the year market value information Timidity Co.--Common stock, $88 per share; warrants, $22 each; and convertible preferred, $57 per share Geneswitch, Inc.-Common stock, $1 per share Alpha, Inc.-Common stock, $7 per share; convertible bonds, 99.2 Amtek, Inc.--Common stock, $3 per share Risky Business, Inc.-Bonds, 80.0
