Reference no: EM131797386
Problem
Landers Inc. had the following transactions involving non-strategic investments during 2014.
2014
Apr. 1 Paid $108,000 to buy a 90-day term deposit, $108,000 principal amount, 6.5%, dated April 1.
12 Purchased 3,800 common shares of Dofasco Ltd. at $24.25.
June 9 Purchased 2,600 common shares of Power Corp. at $51.00.
20 Purchased 1,100 common shares of Westburne Ltd. at $17.75.
July 1 Purchased for $75,561 a 8.5%, $73,000 Littleton Inc. bond that matures in eight years when the market interest rate was 7.9%. Interest is paid semiannually beginning December 31, 2014. Landers Inc. plans to hold this investment until maturity.
3 Received a cheque for the principal and accrued interest on the term deposit that matured on June 30.
15 Received a $0.95 per share cash dividend on the Dofasco common shares.
28 Sold 1,900 of the Dofasco common shares at $28.00.
Sept. 1 Received a $2.90 per share cash dividend on the Power Corp. common shares.
Dec. 15 Received a $1.45 per share cash dividend on the remaining Dofasco common shares owned.
31 Received the interest on the Littleton bond.
31 The fair values of Landers Inc.'s investments on this date were: Dofasco shares, $25.40; Power Corp. shares, $43.15; Westburne shares, $18.05. Assume the fair value and the carrying value of the Littleton bond were equal.
2015 Feb. 16 Sold the remaining Dofasco shares at $28.25.
Required:
Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to the nearest whole dollar amount.)
Show how Landers Inc.'s investments will appear on its December 31, 2014, balance sheet. (Do not round intermediate calculations.)
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