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Take me to the text The following are investment activities for Moko Company. 1) On January 31, 2020, Moko Company purchased a $21,600, 10-year bond
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The following are investment activities for Moko Company.
1) On January 31, 2020, Moko Company purchased a $21,600, 10-year bond at par with 5% interest paid annually on December 31. Moko Company is planning to hold this investment until maturity. 2) On February 10, 2020, Moko Company invested $16,200 in Blast Company by purchasing 2,700 common shares. This is an insignificant investment in Blast Company with the intention of selling it within a year. 3) On March 1, 2020, Moko Company made an investment of $119,600 in Elgin Company by acquiring 5% of its 184,000 outstanding common shares. Moko Company plans to hold on to these shares for at least a few years. 4) On April 1, 2020, Moko Company received a cash dividend from Blast Company for a total of $1,100. 5) On April 30, 2020, Moko Company received a cash dividend from Elgin Company for a total of $1,600. 6) On Moko Companys year-end of October 31, 2020, Blast Companys common shares were trading at $7.00 per share, and Elgin Companys shares were trading at $12.00 per share. Required Prepare journal entries using proper accounting methods for all transactions including the year end accrual of the bonds interest. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number.
| Date | Account Title and Explanation | Debit | Credit |
| Jan 31 | AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsShort-Term Investment - SharesUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment
| Answer
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| AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsShort-Term Investment - SharesUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment
| Answer
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| To record purchase of bonds at par | |||
| Feb 10 | AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsShort-Term Investment - SharesUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment
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| AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsShort-Term Investment - SharesUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment
| Answer
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| To record purchase of common shares as a short-term investment | |||
| Mar 1 | AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsShort-Term Investment - SharesUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment
| Answer
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| AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsShort-Term Investment - SharesUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment
| Answer
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| To record investment of common shares | |||
| Apr 1 | AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsShort-Term Investment - SharesUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment
| Answer
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| AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsShort-Term Investment - SharesUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment
| Answer
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| To record dividends received | |||
| Apr 30 | AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsShort-Term Investment - SharesUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment
| Answer
| |
| AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsShort-Term Investment - SharesUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment
| Answer
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| To record dividends received | |||
| Oct 31 | AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsShort-Term Investment - SharesUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment
| Answer
| |
| AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsShort-Term Investment - SharesUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment
| Answer
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| To record unrealized gain on investment in Blast Company | |||
| Oct 31 | AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsShort-Term Investment - SharesUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment
| Answer
| |
| AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsShort-Term Investment - SharesUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment
| Answer
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| To record unrealized loss on investment in Elgin Company | |||
| Oct 31 | AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsShort-Term Investment - SharesUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment
| Answer
| |
| AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsShort-Term Investment - SharesUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment
| Answer
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| To record accrued interest revenue on bond investment | |||
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Canadian Income Taxation Planning And Decision Making
Authors: Joan Kitunen, William Buckwold
17th Edition 2014-2015 Version
1259094332, 978-1259094330
