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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 (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.
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On January 31, 2006, the home office of Wall Company collected a trade account receivable of Doris Branch. The accounting for this transaction by Wall Company should include a:
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