Prepare the december journal entries to record the receipt

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Problem

On July 1, 2016, Wolfpack Corporation purchased securities which it intends to buy and sell frequently. These securities consisted of (a) Todd Corporation 10%, 5-year bonds with a face value of $20,000 which were purchased for $18,500 and (b) 300 shares of Cornett Company common stock which were purchased at $40 per share. Assume that on December 31, 2016, Wolfpack received interest on the Todd Corporation bonds as well as a $3 dividend per share interest on the Cornett Company stock.

Required:

Prepare the December 31 journal entries to record the receipt of the interest and the receipt of the dividends.

Reference no: EM131891355

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