Refer to the information in RE 15 1. Assume that on February 1, Year 2, the Aggie Corporation sold its investment in Bike Company stock for $6,400. Prepare the journal entries of Aggie Corporation to record the sale and adjustment of the unrealized gain or loss.
In RE 15 1, On April 30 of Year 1, the Aggie Corporation purchased available for sale securities. These securities consisted of (a) Smith Corporation 10%, five year bonds with a face value of $12,000, which were purchased at par plus four months of accrued interest and (b) 300 shares of Bike Company common stock, which were purchased at $20 per share.
Prepare the April 30 journal entry to record the purchase of these available for sale securities.