Securities which do not fall under the category of trading securities or the held to maturity securities are termed as AFS (Available for Sales) securities. The main reason behind buying these is to augment the market value or capitulating interests and dividend. They are called long term investments when they are held for longer durations while if bought for selling in a short period of time, they are called short term investments. To calculate: To prepare the journal entries to record the below short term securities investments of Krum Company that happened in 2015. $450000 cash paid on August 1 to purchase Houtte’s 9% debt securities dated 30 July, 2015 and maturing January 30, 2016. A check received on 30 t h October from Houtte for 90 days interest on the debt securities purchased.

Question

Want to see the full answer?

Answer 1

Question

Chapter 15, Problem 5E

To determine

Introduction:

Securities which do not fall under the category of trading securities or the held to maturity securities are termed as AFS (Available for Sales) securities. The main reason behind buying these is to augment the market value or capitulating interests and dividend. They are called long term investments when they are held for longer durations while if bought for selling in a short period of time, they are called short term investments.

To calculate:

To prepare the journal entries to record the below short term securities investments of Krum Company that happened in 2015.

$450000 cash paid on August 1 to purchase Houtte’s 9% debt securities dated 30 July, 2015 and maturing January 30, 2016.

A check received on 30^t^h October from Houtte for 90 days interest on the debt securities purchased.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

What is the price earning ratio? General accounting

Need help with this accounting question

Pioneer manufacturing provided the following solve this general accounting question

Answer 2

Question

Chapter 15, Problem 5E

To determine

Introduction:

Securities which do not fall under the category of trading securities or the held to maturity securities are termed as AFS (Available for Sales) securities. The main reason behind buying these is to augment the market value or capitulating interests and dividend. They are called long term investments when they are held for longer durations while if bought for selling in a short period of time, they are called short term investments.

To calculate:

To prepare the journal entries to record the below short term securities investments of Krum Company that happened in 2015.

$450000 cash paid on August 1 to purchase Houtte’s 9% debt securities dated 30 July, 2015 and maturing January 30, 2016.

A check received on 30^t^h October from Houtte for 90 days interest on the debt securities purchased.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 15, Problem 5E

To determine

Introduction:

Securities which do not fall under the category of trading securities or the held to maturity securities are termed as AFS (Available for Sales) securities. The main reason behind buying these is to augment the market value or capitulating interests and dividend. They are called long term investments when they are held for longer durations while if bought for selling in a short period of time, they are called short term investments.

To calculate:

To prepare the journal entries to record the below short term securities investments of Krum Company that happened in 2015.

$450000 cash paid on August 1 to purchase Houtte’s 9% debt securities dated 30 July, 2015 and maturing January 30, 2016.

A check received on 30^t^h October from Houtte for 90 days interest on the debt securities purchased.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 15, Problem 5E

To determine

Introduction:

Securities which do not fall under the category of trading securities or the held to maturity securities are termed as AFS (Available for Sales) securities. The main reason behind buying these is to augment the market value or capitulating interests and dividend. They are called long term investments when they are held for longer durations while if bought for selling in a short period of time, they are called short term investments.

To calculate:

To prepare the journal entries to record the below short term securities investments of Krum Company that happened in 2015.

$450000 cash paid on August 1 to purchase Houtte’s 9% debt securities dated 30 July, 2015 and maturing January 30, 2016.

A check received on 30^t^h October from Houtte for 90 days interest on the debt securities purchased.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 15, Problem 5E

To determine

Introduction:

Securities which do not fall under the category of trading securities or the held to maturity securities are termed as AFS (Available for Sales) securities. The main reason behind buying these is to augment the market value or capitulating interests and dividend. They are called long term investments when they are held for longer durations while if bought for selling in a short period of time, they are called short term investments.

To calculate:

To prepare the journal entries to record the below short term securities investments of Krum Company that happened in 2015.

$450000 cash paid on August 1 to purchase Houtte’s 9% debt securities dated 30 July, 2015 and maturing January 30, 2016.

A check received on 30^t^h October from Houtte for 90 days interest on the debt securities purchased.

Answer 6

Chapter 15, Problem 5E

To determine

Introduction:

Securities which do not fall under the category of trading securities or the held to maturity securities are termed as AFS (Available for Sales) securities. The main reason behind buying these is to augment the market value or capitulating interests and dividend. They are called long term investments when they are held for longer durations while if bought for selling in a short period of time, they are called short term investments.

To calculate:

To prepare the journal entries to record the below short term securities investments of Krum Company that happened in 2015.

$450000 cash paid on August 1 to purchase Houtte’s 9% debt securities dated 30 July, 2015 and maturing January 30, 2016.

A check received on 30^t^h October from Houtte for 90 days interest on the debt securities purchased.

Answer 7

Chapter 15, Problem 5E

To determine

Introduction:

Securities which do not fall under the category of trading securities or the held to maturity securities are termed as AFS (Available for Sales) securities. The main reason behind buying these is to augment the market value or capitulating interests and dividend. They are called long term investments when they are held for longer durations while if bought for selling in a short period of time, they are called short term investments.

To calculate:

To prepare the journal entries to record the below short term securities investments of Krum Company that happened in 2015.

$450000 cash paid on August 1 to purchase Houtte’s 9% debt securities dated 30 July, 2015 and maturing January 30, 2016.

A check received on 30^t^h October from Houtte for 90 days interest on the debt securities purchased.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 15 - Prob. 1DQ Ch. 15 - Prob. 2DQ Ch. 15 - Prob. 3DQ Ch. 15 - Prob. 4DQ Ch. 15 - Prob. 5DQ Ch. 15 - Prob. 6DQ Ch. 15 - Prob. 7DQ Ch. 15 - Prob. 8DQ Ch. 15 - Prob. 9DQ Ch. 15 - Prob. 10DQ

Videos

Want to see the full answer?

Chapter 15 Solutions