Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter C, Problem 5E
Summary Introduction
Concept Introduction:
Available for sale debt securities are the investments in debt securities that are not classified under held to maturity or trading debt securities categories. These investments are recorded using the fair value valuation method.
To prepare: the
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Prepare Krum Company's journal entries to record the following transactions involving its short-term investments in available-for-sale
debt securities, all of which occurred during the current year.
a. On August 1, paid $66,000 cash to purchase Houtte's 12%, six-month debt securities ($66,000 principal), dated August 1.
b. On October 30, received a check from Houtte for 90 days' interest on the debt securities in transaction a. (Use 360 days in a year.
Do not round your intermediate calculations.)
View transaction list
Journal entry worksheet
1
2
On August 1, paid $66,000 cash to purchase Houtte's 12% six-month debt
securities ($66,000 principal), dated August 1.
a.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
Prepare Krum Company's journal entries to record the following transactions involving its short-term investments in available-for-sale
debt securities, all of which occurred during the current year.
a. On August 1, paid $62,000 cash to purchase Houtte's 11%, six-month debt securities ($62,000 principal), dated August 1.
b. On October 30, received a check from Houtte for 90 days' interest on the debt securities in transaction a. (Use 360 days in a year.
Do not round your intermediate calculations.)
View transaction list
Journal entry worksheet
1
On August 1, paid $62,000 cash to purchase Houtte's 11% six-month debt
securities ($62,000 principal), dated August 1.
2
Note: Enter debits before credits.
Transaction
a.
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
Prepare Krum Co.’s journal entries to record the following transactions involving its short-term investments in available-for-sale debt securities, all of which occurred during the current year. a. On August 1, paid $50,000 cash to purchase Houtte’s 9%, six-month debt securities ($50,000 principal), dated August 1. b. On October 30, received a check from Houtte for 90 days’ interest on the debt securities in part a.
Chapter C Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. C - Under what two conditions should investments be...Ch. C - Prob. 2DQCh. C - Prob. 3DQCh. C - Identify the three classes of debt investments and...Ch. C - Prob. 5DQCh. C - Prob. 6DQCh. C - Prob. 7DQCh. C - Prob. 8DQCh. C - Prob. 9DQCh. C - Prob. 10DQ
Ch. C - Prob. 11DQCh. C - Prob. 12DQCh. C - Prob. 13DQCh. C - Prob. 14DQCh. C - Which of the following statements a through g are...Ch. C - Prob. 2QSCh. C - Prob. 3QSCh. C - Prob. 4QSCh. C - Prob. 5QSCh. C - Prob. 6QSCh. C - Journ Co. purchased short-term investments in...Ch. C - Prob. 8QSCh. C - Prob. 9QSCh. C - Prob. 10QSCh. C - Prob. 11QSCh. C - Prob. 12QSCh. C - Complete the following descriptions by filling in...Ch. C - Complete the following descriptions by filling in...Ch. C - Prob. 15QSCh. C - Prob. 17QSCh. C - Complete the following descriptions by filling in...Ch. C - Prob. 2ECh. C - Prob. 4ECh. C - Prob. 5ECh. C - Prob. 6ECh. C - Prob. 7ECh. C - Use the following information of Prescrip Co. to...Ch. C - Prob. 9ECh. C - Prob. 10ECh. C - Prob. 12ECh. C - Complete the following descriptions by filling in...Ch. C - Prob. 14ECh. C - Prob. 1PSACh. C - Prob. 3PSACh. C - Prob. 4PSACh. C - Prob. 5PSACh. C - Prob. 6PSACh. C - Prob. 1PSBCh. C - Prob. 3PSBCh. C - Prob. 4PSBCh. C - Prob. 5PSBCh. C - Prob. 6PSBCh. C - Prob. CSPCh. C - Prob. 1GLPCh. C - Prob. 2GLPCh. C - Prob. 1FSACh. C - Prob. 2FSACh. C - Prob. 3FSACh. C - Prob. 2BTN
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