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, $100 par, 200 shares $37,400
April 1 U.S. government bonds, 11%, due April 1, 2022, interest payable April 1 and October 1, 110 bonds of $1,000 par each 110,000
July 1 McGrath Company 12% bonds, par $50,000, dated March 1, 2012 purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2032 54,000
Prepare entries necessary to classify the amounts into proper accounts, assuming that all the securities are classified as available-for-sale.
Fill in the debit/credit values.
Description/Account Debit Credit
Debit Investments (AFS)
Equity Investments (AFS)
Interest Revenue 2000