Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

There are 9 GL need to be complete for this question; I only list the numbe that I need help with. 4 Record the entry

image text in transcribed

There are 9 GL need to be complete for this question; I only list the numbe that I need help with.

4

Record the entry to adjust to fair value on the date of sale of the Kansas Abstractor bonds.

5

Record the sale of the investment in Kansas Abstractors bonds.

10

Record the sale of the Treasury bonds for $5.7 million.

11

Record the receipt of cash dividends of $3 million from the Millwork Ventures Company preferred shares.

12

Record the accrued interest.

14

Record the entry to adjust to fair value for the NXS Corporation common shares.

15

Record the entry to adjust to fair value on the date of sale of the NXS Corporation common shares

16

Record the entry for the reclassification adjustment on the sale of the NXS Corporation common shares

17

Record the sale of the NXS Corporation common shares for $43 million.

Problem 12-9 Securities held-to-maturity; securities available for sale, trading securities and equity investments [LO12-1, 12-2, 12-3, 12-4, 12-5] Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2018 and the first month of 2019, The only securities held by Amalgamated at October 1 were $30 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1 at face value and held in Amalgamated's trading portfolio. The company's fiscal year ends on December 31 2018 Oct. 18 Purchased 2 million preferred shares of Millwork Ventures Company for $58 million 31 Received semiannual interest of $1.5 million from the Kansas Abstractors bonds Nov. 1 Purchased 10% bonds of Holistic Entertainment Enterprises at their 18 million face value, to be held until they mature in 2025. Semiannual interest is payable April 30 and October 31. continue to fall. No unrealized gains and losses had been recorded on these bonds previously Semiannual interest is payable May 31 and November 30 prices prevailing market conditions encourage sale 1 Sold the Kansas Abstractors bonds for $28 million because rising interest rates are expected to cause their fair value to Dec. 1 Purchased 12% bonds of Household Plastics Corporation at their $60 million face value, to be held until they mature in 2028 20 Purchased U. S. Treasury bonds for $5.6 million as trading securities, hoping to earn profits on short-term differences in 21 Purchased 4 million camon shares of NXS Corporation for $44 million, planning to earn profits fram dividends or gains if 23 Sold the Treasury bonds for $5.7 million 29 Received cash dividends of $3 million from the Millwork Ventures Campany preferred shares. 31 Recorded any necessary adjusting entry (s) and closing entries relating to the investments. The market price of the Millwork Ventures Company preferred stock was $27.50 per share and $11.50 per share for the NXS Corporation carmon. The fair values of the bond investments were $58.7 million for Household Plastics Corporation and $16.7 million for Holistic Entertainment Enterprises. 2019 Jan. 7 Sold the NXS Corporation common shares for $43 million Required: Prepare the appropriate journal entry for each transaction or event. (If no entry is required for a transaction event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions