URGENT All transactions and adjustments for 2021 have been recorded and reported in the trial balance except for the items described below Jan 7 Issued 1,100 preferred shares for $25,000 In total, 100,000, $2, noncumulative, convertible, preferred shares are authorized Each preferred share is convertible into five common shares Mar 16 Purchased 800 common shares of Osborne Inc , to be held for trading purposes, for $28 per share July 1 Purchased $100,000 Solar Inc 10 year, 5 bonds at 108 2, when the market interest rate was 4 Interest is received semi annually on July 1 and January 1 Carla Vista purchased the bonds to earn interest Aug 2 Sold the Osborne common shares for $29 per share 5 Invested $20,000 in a money market fund Sept 25 550 of the preferred shares issued on January 7 were converted into common shares Oct 24 Cashed in the money market fund, receiving $20,000 plus $200 interest Nov 30 Obtained a $50,000 bank loan by issuing a three year, 6 note payable Carla Vista is required to make equal blended payments of $1,521 at the end of each month The first payment was made on December 31 Note that at December 31, $15,757 of the note payable is due within the next year Dec 1 Declared the annual dividend on the preferred shares on December 1 to shareholders of record on December 23, payable on January 15 31 Carla Vista owns 40 of RES RES earned $21,300 and paid dividends of $1,600 in 2021 The fair value of the RES investment was $98,000 31 Semi annual interest is receivable on the Solar Inc bonds on January 1, 2022 The bonds were trading at 106 on December 31, 2021 31 The annual interest is due on the bonds payable on January 1, 2022 The par value of the bonds is $130,000 and the bonds were issued when the market interest rate was 7 31 The fair value of the long term investment at FVTOCIequity was $28,900 Ignore income tax calculation Record the transactions (this is what i have so far) Date Account Titles and Explanation Debit Credit Jan 7 Cash 25000 Preferred Shares 25000 (Issued preferred shares for cash ) Mar 16 Common Shares 22400 Cash 22400 (To record purchase of investment ) July 1 Investments at Amortized Cost, Money Market Fund 108200 Cash 108200 (To record purchase of investment in bonds ) Aug 2 V Cash 7 23200 Investment Income or Loss 800 Common Shares 22400 (Sold Osborne common shares ) Aug 5 (To record purchase of investment ) Sep 25 (Converted preferred share investment into common shares ) Oct 24 Cash 20000 Interest Revenue 200 Investments at Amortized Cost, Money Market Fund (Cashed in money market investment ) Nov 30 (Borrowed cash from bank and signed a note ) Dec 1 (Declared dividend on preferred shares ) Dec 31 7 (Paid interest and principal on notes payable ) Dec 31 (Record investment income from associate ) Dec 31 (Collection of dividend from associate ) Dec 31 (To accrue interest revenue ) Dec 31 (To accrue interest expense ) Dec 31 (To record fair value adjustment )

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Posted on Sep 14, 2024

URGENT All transactions and adjustments for 2021 have been recorded and reported in the trial balance except for the items described below. Jan. 7 Issued

URGENT

All transactions and adjustments for 2021 have been recorded and reported in the trial balance except for the items described below.

Jan. 7	Issued 1,100 preferred shares for $25,000. In total, 100,000, $2, noncumulative, convertible, preferred shares are authorized. Each preferred share is convertible into five common shares.
Mar. 16	Purchased 800 common shares of Osborne Inc., to be held for trading purposes, for $28 per share.
July 1	Purchased $100,000 Solar Inc. 10-year, 5% bonds at 108.2, when the market interest rate was 4%. Interest is received semi-annually on July 1 and January 1. Carla Vista purchased the bonds to earn interest.
Aug. 2	Sold the Osborne common shares for $29 per share.
5	Invested $20,000 in a money-market fund.
Sept. 25	550 of the preferred shares issued on January 7 were converted into common shares.
Oct. 24	Cashed in the money-market fund, receiving $20,000 plus $200 interest.
Nov. 30	Obtained a $50,000 bank loan by issuing a three-year, 6% note payable. Carla Vista is required to make equal blended payments of $1,521 at the end of each month. The first payment was made on December 31. Note that at December 31, $15,757 of the note payable is due within the next year.
Dec. 1	Declared the annual dividend on the preferred shares on December 1 to shareholders of record on December 23, payable on January 15.
31	Carla Vista owns 40% of RES. RES earned $21,300 and paid dividends of $1,600 in 2021. The fair value of the RES investment was $98,000.
31	Semi-annual interest is receivable on the Solar Inc. bonds on January 1, 2022. The bonds were trading at 106 on December 31, 2021.
31	The annual interest is due on the bonds payable on January 1, 2022. The par value of the bonds is $130,000 and the bonds were issued when the market interest rate was 7%.
31	The fair value of the long-term investment at FVTOCIequity was $28,900. Ignore income tax calculation.

Record the transactions.

(this is what i have so far)

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Date Account Titles and Explanation Debit Credit Jan. 7 Cash 25000 Preferred Shares 25000 (Issued preferred shares for cash.) Mar. 16 Common Shares 22400 Cash 22400 (To record purchase of investment.) July 1 Investments at Amortized Cost, Money Market Fund 108200 Cash 108200 (To record purchase of investment in bonds.) Aug. 2 V Cash 7 23200 Investment Income or Loss 800 Common Shares 22400 (Sold Osborne common shares.) Aug. 5 (To record purchase of investment.) Sep. 25 (Converted preferred share investment into common shares.) Oct. 24 Cash 20000 Interest Revenue 200 Investments at Amortized Cost, Money Market Fund (Cashed in money market investment.) Nov. 30 (Borrowed cash from bank and signed a note.) Dec. 1 (Declared dividend on preferred shares.) Dec. 31 7 (Paid interest and principal on notes payable.) Dec. 31 (Record investment income from associate.) Dec 31 (Collection of dividend from associate.) Dec. 31 (To accrue interest revenue.) Dec. 31 (To accrue interest expense.) Dec. 31 (To record fair value adjustment.)