Problemon july 1 2016 wolfpack corporation purchased, Ask an Expert

Accounting

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.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92719702

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