Journ Co. purchased short-term investments in available-for-sale
debt securities at a cost of $52,200 cash on November 25. At
December 31, these securities had a fair value of $51,200. This is
the first and only time the company has purchased such
securities.
1. 2. & 3. Prepare the November 25 entry to
record the purchase of debt securities, the December 31 year-end
adjusting entry for the securities' portfolio, and the April 6
entry when Journ sells 8% of these securities ($4,176 cost) for
$5,600 cash.
Get Answers For Free
Most questions answered within 1 hours.