Question
Zyggy Corporation has the following investment activity during 2015, 2016, and 2017: Purchased trading investment of $240,000 in the stock of Allen Corporation on February
Zyggy Corporation has the following investment activity during 2015, 2016, and 2017: Purchased trading investment of $240,000 in the stock of Allen Corporation on February 3, 2015. The investment was sold on June 18, 2015, for $252,000 Purchased trading investment of $480,000 in the stock of Becker Corporation on October 29, 2015. The investment had a December 31, 2015, fair value of $456,000 and was sold on March 1, 2016, for $486,000. Purchased AFS investment of $720,000 in the stock of Corey Corporation on November 1, 2015. Its fair value on December 31, 2015 and 2016 was $768,000 and $612,000, respectively. The 2016 decline in value was determined to be other than temporary. The investment was sold on February 15, 2017, for $600,000. Purchased AFS investment of $600,000 in the stock of Donata Corporation on April 4, 2017. Its fair value on December 31, 2017, was $642,000. Purchased HTM investment on January 2, 2016, of $233,339 in Eiffel Corporations $240,000 face value, 3 percent bond, yielding 4 percent to maturity, interest paid annually on December 31. On December 31, 2017, the fair value of the bond is $180,000, and the decline is determined to be other than temporary. Required For each of the above investments, prepare the journal entries. Round your answers to the nearest dollar.
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