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    QS 15-9 Debt securities transactions L.O. P2
    On February 1 2011 Charo Mendez purchased 6% bonds issued by CR Utilities at a cost of $30000 which is their par value. The bonds pay interest semiannually on July 31 and January 31. For 2011 prepare entries to record Mendezs July 31 receipt of interest and its December 31 year-end interest accrual.(Do not round your intermediate calculations. Omit the $ sign in your response.)
    Exercise 15-2 Accounting for short-term trading securities L.O. P1
    Prepare journal entries to record the following transactions involving the short-term securities investments of Smart Co. all of which occurred during year 2011.
    On March 22 purchased 770 shares of FIX Company stock at $11 per share plus a $340 brokerage fee. These shares are categorized as trading securities.(Omit the $ sign in your response.)
    On September 1 received a $2 per share cash dividend on the FIX Company stock purchased in transactiona.(Omit the $ sign in your response.)
    On October 8 sold 385 shares of FIX Co. stock for $21 per share less a $330 brokerage fee.(Do not round your intermediate calculations. Omit the $ sign in your response.)
    Serial Problem Business Solutions L.O. P1
    While reviewing the March 31 2012 balance sheet of Business Solutions Santana Rey notes that the business has built a large cash balance of $68070. Its most recent bank money market statement shows that the funds are earning an annualized return of 0.50%. S. Rey decides to make several investments with the desire to earn a higher return on the idle cash balance. Accordingly in April 2012 Business Solutions makes the following investments in trading securities:
    On June 30 2012 the per share market price (fair value) of the Johnson & Johnson shares is $50 and the Starbucks shares is $23.
    Prepare journal entries to record the April purchases of trading securities by Business Solutions.(Omit the $ sign in your response.)
    On June 30 2012 prepare the adjusting entry to record any necessary fair value adjustment to its portfolio of trading securities.(Omit the $ sign in your response.)
    Problem 15-5A Accounting for long-term investments in securities; with and without significant influence L.O. P3 P4
    Pillar Steel Co. which began operations on January 4 2011 had the following subsequent transactions and events in its long-term investments.
    Kildaires net income for 2011 is $1166000 and the fair value of its stock at December 31 is $35.00 per share.
    Kildaires net income for 2012 is $1477200 and the fair value of its stock at December 31 is $38.00 per share.
    2.00 points
    Problem 15-5A Part 2
    Assume that although Pillar owns 25% of Kildaires outstanding stock circumstances indicate thatit does not have a significant influence over the investeeand that it is classified as an available-for-sale security investment.
    Prepare journal entries to record the preceding transactions and events for Pillar. Also prepare an entry dated January 2 2013 to remove any balance related to the fair value adjustment.(Omit the $ sign in your response.)
    Problem 15-2A Recording adjusting and reporting short-term available for-sale securities L.O. P3
    [The following information applies to the questions displayed below.]
    Perry Company had no short-term investments prior to year 2011. It had the following transactions involving short-term investments in available-for-sale securities during 2011.
    3.00 points
    Problem 15-2A Part 1
    2.00 points
    Problem 15-2A Part 2
    Prepare a table to compare the year-end cost and fair values of Perrys short-term investments in available-for-sale securities. The year-end fair values per share are: Gem Co. $29.25; PepsiCo $44.25; and Xerox $14.00.(Do not round your intermediate calculations. Negative amount should be indicated by a minus sign. Omit the $ sign in your response.)
    1.00 points
    Problem 15-2A Part 3
    Prepare an adjusting entry if necessary to record the year-end fair value adjustment for the portfolio of short-term investments in available-for-sale securities.(Do not round your intermediate calculations. Omit the $ sign in your response.)
    Gain (Loss)

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