accounting hw5 495136

HW5 #1 Garfield Company purchased, as a held-to-maturity investment, $92,700 of the 9%, 12-year bonds of Chester Corporation for $75,474, which provides an 12% return. Prepare Garfield’s journal entries for (a) the purchase of the investment and (b) the receipt of annual interest and discount amortization. Assume effective interest amortization is used. (Round answers to zero decimal places, e.g. 25,000. List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Description/Account Debit Credit (a) (b) #2 Garfield Company purchased, as an available-for-sale securities, $63,100 of the 9%, 10-year bonds of Chester Corporation for $55,667, which provides an 11% return. Prepare Garfield’s journal entries for (a) the purchase of the investment, (b) the receipt of annual interest and discount amortization, and (c) the year-end fair value adjustment. The bonds have a year-end fair value of $57,167. Assume effective interest amortization is used. (Round answers to zero decimal places, e.g. 12,510. List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Description/Account Debit Credit (a) (b) (c) #3 Fairbanks Corporation purchased 300 shares of Sherman Inc. common stock as an available-for-sale investment for $10,440. During the year, Sherman paid a cash dividend of $2.95 per share. At year-end, Sherman stock was selling for $36.40 per share. Prepare Fairbanks’s journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. Description/Account Debit Credit (a) (b) (c) #4 Fairbanks Corporation purchased 300 shares of Sherman Inc. common stock as an investment in Equity Investments (Trading) for $8,100. During the year, Sherman paid a cash dividend of $2.85 per share. At year-end, Sherman stock was selling for $29.10 per share. Prepare Fairbanks’s journal entries to record (a) the purchase of the investment, (b) the dividends received,…