Prepare journal entries to record the following transactions involving both the short-term and long-term inves?

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Question
immanuel
Asked at 2012-07-22 04:17:02
Prepare journal entries to record the following transactions involving both the short-term and long-term investments of Corveau Corp., all of which occurred during calendar year 2009. Use the account Short-Term Investments for any transactions that you determine are short term.


a. On February 15, paid $100,000 cash to purchase Anthem's 90-day short-term notes at par, which are dated February 15 and pay 6% interest (classified as held-to-maturity).
b. On March 22, bought 600 shares of Frain Industries common stock at $43 cash per share plus a $140 brokerage fee (classified as long-term available-for-sale securities).
c. On May 15, received a check from Anthem in payment of the principal and 90 days' interest on the notes purchased in transaction a.
d. On July 30, paid $30,000 cash to purchase Moto Electronics' 5% notes at par, dated July 30, 2009, and maturing on January 30, 2010 (classified as trading securities).
e. On September 1, received a $0.40 per share cash dividend on the Frain Industries common stock purchased in transaction b.
f. On October 8, sold 300 shares of Frain Industries common stock for $49 cash per share, less a $120 brokerage fee.
g. On October 30, received a check from Moto Electronics for three months' interest on the notes purchased in transaction d.

(Use a 360-day year and average of 30-day months for interest calculations. Omit the "$" sign in your
response.)

Date General Journal Debit Credit
a.
Feb. 15 Short-Term Investments-HTM 100,000
Cash 100,000

b.
Mar. 22 Long-Term Investments-AFS 25,940
Cash 25,940

c.
May 15 n/r 6,000
n/r
n/r

d.
July 30 n/r 100,000
n/r n/r

e.
Sept. 1 n/r n/r
n/r n/r

f.
Oct. 8 n/r n/r
n/r
n/r

g.
Oct. 30 n/r n/r
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