Prepare journal entry to record all transactions

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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.

Reference no: EM131755102

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