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BaLLatris [955]
4 years ago
15

Albright Company purchased as a long-term investment $500,000 of Benton Corporation 10-year, 9% bonds. Required: Present entries

to record the following selected transactions: Refer to the Chart of Accounts for exact wording of account titles. March 1 Purchased bonds at their face amount for $500,000. May 1 Sold half the bonds at 98 plus accrued interest of $3,750. The broker deducted $200 for brokerage fees and taxes, remitting the balance.
Business
1 answer:
katen-ka-za [31]4 years ago
5 0

Answer:

March 1, purchased securities from Benton Corporation:

Dr Investment in securities 500,000

    Cr Cash 500,000

May 1, sold half of securities plus accrued interest:

Dr Cash 248,550

Dr Loss on investment in securities 5,000

Dr Brokerage fees 200

    Cr Investment in securities 250,000

    Cr Interest revenue 3,750

Securities were sold at 98 or $250,000 x 98% = $245,000, which means that the company lost $5,000 with that investment.

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One of the benefits of a savings account is that it allows your money to grow but there is a high risk associated with it.
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3 years ago
In the current year, Norris, an individual, has $59,000 of ordinary income, a net short-term Capital loss (NSTCL) of $9,100 and
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The pumping cost for delivering water from the Ohio River to Wheeling Steel for cooling hot rolled steel was $1.8 million for th
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1 $1,800,000 0.893 $1.607,400
2 $1,800,000 0.797 $1,434,600
3 $1,800,000 0.712 $1,281,600
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