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Prepare jountal entries to record the following transactionsinvolving the short term securities investments of Blake Cok,, allof which occurred during year 2008.

a. On Feb 15, paid 120,000 cash to purchase RTFs 90 day short termdebt securities $120,000 principal, dated Feb 15, that pay 8%interest (categorized held-to maturity securites).

b. On March 22, purchased 700 shares of XIF Company stock at $27.50per share plus a $150 brokerage fee. These shares are cateborizedas trading securities.

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Sixta Kovacek
Sixta KovacekLv2
28 Sep 2019

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Prepare journal entries to record the following transactionsinvolving both the short-term and long-term investments of SophiaCorp., all of which occurred during calendar year 2011. Use theaccount Short-Term Investments for any transactions that youdetermine are short term.





a.

On February 15, paid $150,000 cash to purchase American General's120-day short-term notes at par, which are dated February 15 andpay 10% interest (classified as held-to-maturity).



b.

On March 22, bought 700 shares of Frain Industries common stock at$25 cash per share plus a $250 brokerage fee (classified aslong-term available-for-sale securities).



c.

On May 15, received a check from American General in payment of theprincipal and 120 days' interest on the notes purchased intransaction a.



d.

On July 30, paid $50,000 cash to purchase MP3 Electronics' 8% notesat par, dated July 30, 2011, and maturing on January 30, 2012(classified as trading securities).



e.

On September 1, received a $0.50 per share cash dividend on theFrain Industries common stock purchased in transactionb.



f.

On October 8, sold 350 shares of Frain Industries common stock for$32 cash per share, less a $175 brokerage fee.



g.

On October 30, received a check from MP3 Electronics for threemonths' interest on the notes purchased in transactiond.

Prepare journal entries to record the following transactionsinvolving the short-term securities investments of Natura Co., allof which occurred during year 2015.


a.

On June 15, paid $122,000 cash to purchase Remedy’s 90-dayshort-term debt securities ($122,000 principal), dated June 15,that pay 9% interest (categorized as held-to-maturitysecurities).
b.

On September 16, received a check from Remedy in payment of theprincipal and 90 days' interest on the debt securities purchased intransaction a. (Use 360 days in a year. Do notround your intermediate calculations.)

Journal Entry Worksheet

On June 15, paid $122,000 cash to purchase Remedy’s 90-dayshort-term debt securities ($122,000 principal), dated June 15,that pay 9% interest (categorized as held-to-maturitysecurities).

On September 16, received a check from Remedy in payment of theprincipal and 90 days' interest on the debt securities purchased intransaction a.

Transaction General Journal Debit Credit
a

*Enter debits before credits

Journal Entry Worksheet

On June 15, paid $122,000 cash to purchase Remedy’s 90-dayshort-term debt securities ($122,000 principal), dated June 15,that pay 9% interest (categorized as held-to-maturitysecurities).

On September 16, received a check from Remedy in payment of theprincipal and 90 days' interest on the debt securities purchased intransaction a.

Transaction General Journal Debit Credit
b

*Enter debits before credits

Rose Company had no short-term investments prior to year 2013.It had the following transactions involving short-term investmentsin available-for-sale securities during 2013.

Apr. 16 Purchased 4,000 shares of Gem Co. stock at $25.75 pershare plus a $400 brokerage fee.

May 1 Paid $160,000 to buy 90-day U.S. Treasury bills (debtsecurities): $160,000 principal amount, 5% interest, securitiesdated May 1.

July 7 Purchased 2,000 shares of PepsiCo stock at $49.00 pershare plus a $370 brokerage fee.

July 20 Purchased 1,000 shares of Xerox stock at $15.00 pershare plus a $450 brokerage fee.

Aug. 3 Received a check for principal and accrued interest onthe U.S. Treasury bills that matured on July 29.

Aug.15 Received an $0.95 per share cash dividend on the Gem Co.stock.

Aug. 28 Sold 2,000 shares of Gem Co. stock at $32.50 per shareless a $490 brokerage fee.

Oct. 1 Received a $2.00 per share cash dividend on the PepsiCoshares.

Dec. 15 Received a $1.10 per share cash dividend on theremaining Gem Co. shares.

Dec. 31 Received a $1.20 per share cash dividend on the PepsiCoshares.

1. Prepare journal entries to record the preceding transactionsand events.

2. Prepare a table to compare the year-end cost and fair valuesof Perry’s short-term investments in available-for-sale securities.The year-end fair values per share are: Gem Co., $28.00; PepsiCo,$46.25; and Xerox, $12.00.

3. Prepare an adjusting entry, if necessary, to record theyear-end fair value adjustment for the portfolio of short-terminvestments in available-for-sale securities.

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