Cardinal Paz Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions.
Feb. 1, 2012 |
Sharapova Company common stock |
$41,400 |
|
April 1 |
U.S. government bonds |
111,000 |
|
July 1 |
McGrath Company 12% bonds, par $54,800, dated March 1, 2012, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2032 |
59,184 |
Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2012, using the straight-line method.
(Round answers to 0 decimal places, e.g. $2,500. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Interest Receivable ????
Debt Investment ??
Interest Revenue 8,754
The fair values of the investments on December 31, 2012, were:
$35,770 |
|
146,970 |
|
McGrath Company bonds |
68,160 |
What entry or entries, if any, would you recommend be made? (Round answers to 0 decimal places, e.g. $2,500. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Fair Value Adjustment
????
Unrealized holding gain or loss- Equity ????