The following data pertain to the securities of Linford Company during 2003, the companys first year of
Question:
The following data pertain to the securities of Linford Company during 2003, the company’s first year of operations:
a. Purchased 400 shares of Corporation A stock at $40 per share plus a commission of $200. This security is classified as trading. Purchased $6,000 of Corporation B bonds. These bonds are classified as trading. Received a cash dividend of $0.50 per share on the Corporation A stock. Sold 100 shares of Corporation A stock for $46 per share. Received interest of $240 on the Corporation B bonds. Purchased 50 shares of Corporation C stock for $3,500. Classified the stock as availablefor-sale. g. Received interest of $240 on the Corporation B bonds. h. Sold 150 shares of Corporation A stock for $28 per share. : j. Ou OonGmEoE Received a cash dividend of $1.40 per share on the Corporation C stock. Interest receivable at year-end on the Corporation B bonds amounts to $60. Prepare journal entries to record the preceding transactions. Post the entries to T-accounts, and determine the amount of each of the following for the year: 1. Dividend revenue. 2. Bond interest revenue. 3. Net gain or loss from selling securities.
Step by Step Answer:
Financial Accounting
ISBN: 9780324066708
8th Edition
Authors: W. Steven Albrecht, James D. Stice, Earl Kay Stice, K. Fred Skousen, Albrecht S.E.