Skip to content
Course Work Minutes

Helping You With Your Course Work

  • Shop
  • Cart
  • Checkout
  • My Account
  • Contact Us
Awaiting product image

ACCT – Cardinal Paz Corp. carries an account in its general ledger called Investments

$19.00

Category: Accounting Tags: 0, 1, account, accounting, accrued, acct, answers, april, bonds, called, cardinal, carries, common, company, corp, credit, debit, december, decimal, entries, entry, explanation, general, government, investments, july, ledger, march, mcgrath, payable, places, plus, prepare, proper, round, sharapova, stock, titles
  • Description
  • Reviews (0)

Description

Cardinal Paz Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the  following descriptions.
Feb. 1, 2012

Sharapova Company common stock, $117 par, 234 shares

$37,200

April 1

U.S. government bonds, 10%, due April 1, 2022, interest payable April 1 and October
1, 112 bonds of $1,000 par each

112,000

July 1

McGrath Company 12% bonds, par $53,600, dated March 1, 2012, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2032

57,888

(a) Prepare entries necessary to classify the amounts into proper accounts,  assuming that all the securities are classified as available­for­sale.  Account Titles and Explanation

Debit

Credit

(b) Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2012, using the straight­line method. (Round answers to 0 decimal places, e.g. $2,500.)
Account Titles and Explanation

Debit

Credit

(c) The fair values of the investments on December 31, 2012, were:
Sharapova Company common stock

$33,000

U.S. government bonds

146,870

McGrath Company bonds

61,510

What entry or entries, if any, would you recommend be made? (Round answers to 0 decimal places, e.g. $2,500.)
Account Titles and Explanation

Debit

Credit

(d) The U.S. government bonds were sold on July 1, 2013, for $119,830 plus accrued interest. Give the proper entry.
Account Titles and Explanation

Debit

Credit

Reviews

There are no reviews yet.

Be the first to review “ACCT – Cardinal Paz Corp. carries an account in its general ledger called Investments” Cancel reply

Your email address will not be published. Required fields are marked *

Related products

  • Placeholder
    Accounting

    Acc 560!!!!!!!

    $1.00 Add to cart
  • Placeholder
    Accounting

    ACCT 301 Week 4

    $11.00 Add to cart
  • Placeholder
    Accounting

    acc560!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    $1.00 Add to cart
Copyright | Zita | Powered by Zita