Qw.3. Journal entry worksheet< 1 2 3 4 5 6 7 8Record the purchase of $73,000, 2-year, 10.0% bond payable to be held as aninvestment.Note: Enter debits before credits.DateMar 01, 2020Record entryShow Transcribed TextIncome StatementBalance SheetGeneral JournalBetter14Clear entryWorseAnalysis Component:If the fair value adjusting entry on December 31, 2020, were not recorded, what would the effect be on the income statement andbalance sheet?Debit CreditView general journalBased on your understanding of GAAP, would it be better or worse to omit an investment loss than investment income? Prepare entries to record the following non-strategic investment transactions of Arrowhead Investment Corporation. (If no entry isrequired for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediatecalculations. Round your final answers to the nearest whole dollar amount.)2020Mar. 1 Paid $73,980 to purchase a $73,000, two-year, 18.0% bond payable of Action Corporation dated March 1. Interestis paid quarterly beginning June 1. Management intends to actively trade bond purchases.Apr. 16 Bought 2,650 connon shares of Brandon Motors at $26.50.May 2 Paid $51,968 to purchase a five-year, 7.50%, $53,000 bond payable of Collingwood Corporation. Interest is paidannually each April 30.June 1 Received a cheque fron Action Corporation regarding quarterly interest.Aug. 1 Brandon Motors' board of directors declared a dividend of $0.75 per share to shareholders of record on August10, payable August 15.15 Received the Brandon Motors dividend.Sept. 1 Received a cheque fron Action Corporation regarding quarterly interest.17 Purchased 26,300 Dauphin Inc. common shares at $3.60.Oct. 20 Sold the Brandon Motors shares at $31.20.Dec. 1 Received a cheque fron Action Corporation regarding quarterly interest.1 Sold the Action Corporation bond at 101.31 Accrued interest on the Collingwood bond. The fair value of the equity security on this date was Dauphin,$3.90. The carrying value equalled the fair value for the Collingwood bond.2021Apr. 38 Received a cheque from Collingwood Corporation regarding annual interest.

Journal entry is an account where the company records its financial transactions on initial basis.…

Answered: 1 2 3 4 5 6 7 8 14 Record the purchase…

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1 2 3 4 5 6 7 8 14 Record the purchase of $73,000, 2-year, 10.0% bond payable to be held as a investment.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 5RE

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