FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Sage 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, 2025
April 1
July 1
(a)
Sharapova Company common stock, $100 par, 200 shares
U.S. government bonds, 11%, due April 1, 2035, interest payable April 1 and October 1, 120 bonds of
$1,000 par each
McGrath Company 12% bonds, par $46,300, dated March 1, 2025, purchased at 104 plus accrued
interest, interest payable annually on March 1, due March 1, 2045
Account Titles and Explanation
Debit
Prepare entries necessary to classify the amounts into proper accounts, assuming that the debt securities are classified as
available-for-sale. Sharapova has 200,000 shares outstanding. (List all debit entries before credit entries. Credit account titles are
automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
enter o for the amounts.)
Credit
$41,200
||
120,000
50,004
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Transcribed Image Text:Sage 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, 2025 April 1 July 1 (a) Sharapova Company common stock, $100 par, 200 shares U.S. government bonds, 11%, due April 1, 2035, interest payable April 1 and October 1, 120 bonds of $1,000 par each McGrath Company 12% bonds, par $46,300, dated March 1, 2025, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2045 Account Titles and Explanation Debit Prepare entries necessary to classify the amounts into proper accounts, assuming that the debt securities are classified as available-for-sale. Sharapova has 200,000 shares outstanding. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Credit $41,200 || 120,000 50,004
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