Yahoo Search F M mcgrawhill connectYX eztomheducationcomhmt

Yahoo Search F × \\M mcgraw-hill connect-YX ezto.mheducation.com/hm.tpx Construction Forms Corporation buys securities to be available for sale when circumstances warrant, not to profit from short-term differences in price and not necessarily to hold debt securities to maturity. The following selected transactions relate to investment activities of Construction Forms whose fiscal year ends on December 31. No investments were held by Construction Forms at the beginning of the year 2016 Mar. 2 Purchased 1 million Platinum Gauges, Inc., common shares for $23 million, including brokerage Apr 12 Purchased $11 million of 1090 bonds at face value from Zenith Wholesale Corporation. July 18 Received cash dividends of $4 million on the investment in Platinum Gauges, Inc., common Oct. 15 Received semiannual interest of $1 million on the investment in Zenith bonds. Oct. 16 Sold the Zenith bonds for $14 million fees and commissions. shares Nov. 1 Purchased 500,000 LTD International preferred shares for $36 million, including brokerage fees Dec. 31 Recorded the necessary adjusting entry(s) relating to the investments. The market prices of the and commissions investments are $26 per share for Platinum Gauges, Inc., and $64 per share for LTD International preferred shares 2017 Jan. 23 Sold half the Platinum Gauges, Inc., shares for $26 per share Mar 1 Sold the LTD International preferred shares for $66 per share Required: 1. Prepare the appropriate journal entry for each trans action or event. (If no entry is required for a transaction/event, select\"No journal entry required\" in the first account field. Enter your answers in millions rounded to 1 decimal place (.e.. 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet 6 Received semiannual interest of $1.00 million on the investment in Zenith bonds Type here to

Solution

March 2. Investment A/c 23 million

To bank. 23 million

April 12. Investment a/c. 11 million

To bank. 11 million

July 18. Profit and loss a/c 4 million

To bank. 4 million

Oct 15. Profit and loss a/c. 1 million

To bank. 1 million

October 16. Bank a/c 14 million

To Investment 11 million

To profit and loss 11 million

1st November. Investment a/c. 36 million

To bank. 36 million

December 31st. Unrealised loss. 4 million

To Investment. 4 million

Investment a/c. 3 million

To unrealised gain. 3 million

Jan 23. Bank a/c. 13 million

To Investment. 13 million

Unrealised gain a/c 1.5 million

To profit n loss a/c. 1.5 million

Mar 1. Bank a/c 33 milliom

To Investment a/c 32 million

To unrealised loss. 1 million

Mar 1. Profit and loss /c. 3 million

To unrealised loss. 3 million