Acc 423 Week 3 Wileyplus Assignment

Acc 423 Week 3 Wileyplus Assignment

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ACC 423 Week 3 WileyPlus Assignment – Exercises

Business – Accounting



E17–7 (Trading Securities Entries) On December 21, 2010, Zurich Company provided you with the following information regarding its trading securities.



December 31, 2010

Investments(Trading) Cost Fair Value Unrealized Gain (Loss)

Stargate Corp. stock $20,000 $19,000 $(1,000)

Carolina Co. stock 10,000 9,000 (1,000)

Vectorman Co. stock 20,000 20,600 600

Total Portfolio $50,000 $48,600 (1,400)

Previous securities fair value adjustment balance –0–

Securities fair value adjustment–Cr. $(1,400)

During 2011, Carolina Company stock ... Show more content on Helpwriting.net ...carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions.

Feb. 1, 2010 Sharapova Company common stock, $100 par, 200 shares $37,400

April 1 U.S. government bonds, 11%, due April 1, 2020, interest payable April 1 and October 1, 110 bonds of $1,000 par each 110,000

July 1 McGrath Company 12% bonds, par $50,000, dated March 1, 2010 purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2030 54,000



Prepare entries necessary to classify the amounts into proper accounts, assuming that all the securities are classified as available–for–sale. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)



Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2010, using the straight–line method. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2. Round computations to 3 decimal places, e.g. 12.252 and the final answers to zero decimal places, e.g. 12,510.)



The fair values of the securities on December 31, 2010, were:

Sharapova Company common stock $31,800

U.S. government bonds 124,700

McGrath Company bonds 58,600

What entry or entries, if any, would you recommend be made?



The U.S. government bonds were sold on July 1,2011, for $119,200 plus accrued interest. Give the proper entry. (List multiple debit/credit

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