fees. Interest is payable semiannually on April 1 and October 1.
Received a cash dividend of $0.80 per share on the NJF common
Sold 200 shares of NJF common stock at $42 per share less
fees of $350.
Received $2 per share cash dividend on the SEK common stock.
Received the semiannual interest on the CRT bonds.
Sold the CRT bonds for $77,000 less $1,300 brokerage fees.
The fair values of the NJK and SEK common stocks were at $39 and $30 in
corresponding share at December 31.
(a) Journalize the transactions and post to the accounts Debt Investments
Investments. (Use the T account form.)
(b) Prepare the adjusting entry at December 31, 2012, to report the
investments at fair
value. All securities are considered to be trading securities.
(c) Show the balance sheet presentation of investment securities at
December 31, 2012
(d) Identify the income statement accounts and give the statement
classification of each
Date Account Titles and Explanation Debit Credit
(To record purchase of 1200 shares
of NJF common stock)
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Often, small business owners interchange the important term ‘bookkeeping’ with ‘accounting’ or ‘accounting’ with ‘bookkeeping.’ They should not do that as both these accountancy terms are different.
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