Chat with us, powered by LiveChat In January 2017, the management of Northern Compan - BonPapers

In January 2017, the management of Northern Compan

In January 2017, the management of Northern Company concludes that it has sufficient cash to purchase some short-term investments in debt and stock securities. During the year, the following transactions occurred. Feb. 1 Purchased 1,200 shares of LAF common stock for $51,600 Mar. 1 Purchased 500 shares of NCL common stock for $18,500. Apr. 1 Purchased 70 $1,000, 8% TRC bonds for $70,000. Interest is payable semi-annually on April 1 and October 1. July 1 Received a cash dividend of $0.80 per share on the LAF common stock. Aug. 1 Sold 200 shares of LAF common stock at $42 per share. Sept. 1 Received $2 per share cash dividend on the NCL common stock. Oct. 1 Received the semiannual interest on the TRC bonds. Oct. 1 Sold the TRC bonds for $75,700. At December 31, 1, the fair values of the LAF and NCL common stocks were $39 and $30 per share, respectively. Instructions (a) Journalize the transactions and post to the accounts Debt Investments and Stock Investments. (Use the T-account form.) (b) Prepare the adjusting entry at December 31, 2017, 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, 2017. (d) Identify the income statement accounts and give the statement classification of each account.

Order an Excellent Paper with Bonpapers.com Writing Service

Bonpaper is a Custom Research Paper Writing service based in USA that is Available 24/7 to cater your needs. We have huge experience of writing essays about every possible topic. We have access to the online libraries, peer-journals, and news sites which makes it possible to gather enough data about the topic. 

We provide the plagiarism-free and grammatically perfect essay writing service to our clients. We have written hundreds of essays so far and our clients have gained excellent results as well.

Need Assignment Help?