1. 1/1/16 One Company had the following investment in available for sale security
|
Security
|
cost
|
fair market value
|
|
A
|
20,000
|
25,000
|
|
B
|
30,000
|
29,000
|
4/15/16 they purchased C for $13,500
7/16/16 they sold A for 27,000
Value as of 12/31/16
|
Security
|
cost
|
fmv
|
|
B
|
30,000
|
32,000
|
|
C
|
13,500
|
16,500
|
|
Total
|
43,500
|
48,500
|
Prepare journal entry to record all transactions.
2. 1/1/16 Fleming Corporation issued 9% contract 5 year bonds at 96.209. Face value $900,000 The bonds pay interest annually on Dec 31. Effective interest rate when bonds were issued was 10%. Prepare amortization schedule.
Prepare journal entry for issuance of bonds and first year interest payment.