they are quetions charper 12 question E12-7, E12-12, E12-14.

E 12-7 Various transactions relating to trading securities LO12-1, LO12-3 Rantzow-Lear Company buys and sells debt securities expecting to eam profits on short-term differences in price. The company's fiscal year ends on December 31. The following selected transactions relating to Rantzow-Lear's trading account occurred during December 2018 and the first week of 2019. 28 2018 Dec. 17 Purchased 100 Grocers' Supply Corporation bonds at par for $350,000 Received interest of $2,000 from the Grocers' Supply Corporation bonds. 31 Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation bonds. The market price of the stock was $4,000 per bond. 2019 Jan. 5 Sold the Grocers' Supply Corporation bonds for $395,000. Required: I. Prepare the appropriate journal entry for each transaction. 2. Indicate any amounts that Rantzow-Lear Company would report in its 2018 balance sheet and income state ment as a result of this investment. E 12-12 Available-for-sale securities LO12-1, L012-4 Colah Company purchased $1 million of Jackson, Inc., 5% bonds at par on July 1, 2018, with interest paid semi- annually. Colah determined that it should account for the bonds as an available for sale investment. At December 31, 2018, the Jackson bonds had a fair value of $1.2 million. Colah sold the Jackson bonds on July 1, 2019 for $900,000. Required: 1. Prepare Colah's journal entries to record: a. The purchase of the Jackson bonds on July 1 b. Interest revenue for the last half of 2018 c. Any year-end 2018 adjusting entries d. Interest revenue for the first half of 2019 e. Any entries necessary upon sale of the Jackson bonds on July 1, 2019, including updating the fair-value adjustment, recording any reclassification adjustment, and recording the sale 2. Fill out the following table to show the effect of the Jackson bonds on Colah's net income, other comprehen- sive income, and comprehensive income for 2018, 2019, and cumulatively over 2018 and 2019. 2018 2019 Total Net Income Comprehensive Income On Fehmiary 18, 2018. Tinion Cameration numehneed 10 000 sharee f IRM honde se lana.term investment for 3. Prepare the adjusting entry for December 31, 2019. At December 31. 2018, Hull-Meyers Corp. had the following investments that were purchased during 2018, its first year of operations: E 12-14 Various investment securities LO12-3, LO12-4 Cost Fair Value Trading Securities: Security A Security B Totals $ 900,000 105,000 $1,005,000 $ 910,000 100,000 $1,010,000 (continued) 698 SECTION 2 Assets (concluded) $ 700,000 900,000 $1,600,000 $ 780,000 915,000 $1,695,000 Securities Available-for-Sale: Security C Security D Totals Securities to Be Held-to-Maturity. Security E Security F Totals $ 490,000 615,000 $1,105,000 $ 500,000 610,000 $1,110,000 No investments were sold during 2018. All securities except Security D and Security F are considered short- term investments. None of the fair value changes is considered permanent. Required: Determine the following amounts at December 31, 2018. 1. Investments reported as current assets 2. Investments reported as noncurrent assets 3. Unrealized gain (or loss) component of income before taxes 4. Unrealized gain (or loss) component of accumulated other comprehensive income in shareholders' equity On March 31, 2018 Chow Bmthers Inc bought I V TM E 12-7 Various transactions relating to trading securities LO12-1, LO12-3 Rantzow-Lear Company buys and sells debt securities expecting to eam profits on short-term differences in price. The company's fiscal year ends on December 31. The following selected transactions relating to Rantzow-Lear's trading account occurred during December 2018 and the first week of 2019. 28 2018 Dec. 17 Purchased 100 Grocers' Supply Corporation bonds at par for $350,000 Received interest of $2,000 from the Grocers' Supply Corporation bonds. 31 Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation bonds. The market price of the stock was $4,000 per bond. 2019 Jan. 5 Sold the Grocers' Supply Corporation bonds for $395,000. Required: I. Prepare the appropriate journal entry for each transaction. 2. Indicate any amounts that Rantzow-Lear Company would report in its 2018 balance sheet and income state ment as a result of this investment. E 12-12 Available-for-sale securities LO12-1, L012-4 Colah Company purchased $1 million of Jackson, Inc., 5% bonds at par on July 1, 2018, with interest paid semi- annually. Colah determined that it should account for the bonds as an available for sale investment. At December 31, 2018, the Jackson bonds had a fair value of $1.2 million. Colah sold the Jackson bonds on July 1, 2019 for $900,000. Required: 1. Prepare Colah's journal entries to record: a. The purchase of the Jackson bonds on July 1 b. Interest revenue for the last half of 2018 c. Any year-end 2018 adjusting entries d. Interest revenue for the first half of 2019 e. Any entries necessary upon sale of the Jackson bonds on July 1, 2019, including updating the fair-value adjustment, recording any reclassification adjustment, and recording the sale 2. Fill out the following table to show the effect of the Jackson bonds on Colah's net income, other comprehen- sive income, and comprehensive income for 2018, 2019, and cumulatively over 2018 and 2019. 2018 2019 Total Net Income Comprehensive Income On Fehmiary 18, 2018. Tinion Cameration numehneed 10 000 sharee f IRM honde se lana.term investment for 3. Prepare the adjusting entry for December 31, 2019. At December 31. 2018, Hull-Meyers Corp. had the following investments that were purchased during 2018, its first year of operations: E 12-14 Various investment securities LO12-3, LO12-4 Cost Fair Value Trading Securities: Security A Security B Totals $ 900,000 105,000 $1,005,000 $ 910,000 100,000 $1,010,000 (continued) 698 SECTION 2 Assets (concluded) $ 700,000 900,000 $1,600,000 $ 780,000 915,000 $1,695,000 Securities Available-for-Sale: Security C Security D Totals Securities to Be Held-to-Maturity. Security E Security F Totals $ 490,000 615,000 $1,105,000 $ 500,000 610,000 $1,110,000 No investments were sold during 2018. All securities except Security D and Security F are considered short- term investments. None of the fair value changes is considered permanent. Required: Determine the following amounts at December 31, 2018. 1. Investments reported as current assets 2. Investments reported as noncurrent assets 3. Unrealized gain (or loss) component of income before taxes 4. Unrealized gain (or loss) component of accumulated other comprehensive income in shareholders' equity On March 31, 2018 Chow Bmthers Inc bought I V TM