During 2018, Largent Enterprises purchased bonds as follows:
May 17, Purchased 100 Nugent bonds for $800 per bond.
July 12, Purchased 40 Alfredo bonds at $600 per bond, plus a $600 brokerage commission.
Largent accounts for these investments as securities available for sale. At December 31, 2018, the market values of the securities were as follows: $$\begin{array} { l c }
\text { Security } & \text { Market Value per Bond } \
\hline \text { Nugent } & \$ 720 \
\text { Alfredo } & \$ 640
\end{array}$$ Required:
(1.) Prepare the journal entries to record the acquisition of the two investments.
(2.) Prepare any necessary adjusting entries assuming the bonds are both classified as available for sale securities.

Question

During 2018, Largent Enterprises purchased bonds as follows:
May 17, Purchased 100 Nugent bonds for $800 per bond.
July 12, Purchased 40 Alfredo bonds at $600 per bond, plus a $600 brokerage commission.
Largent accounts for these investments as securities available for sale. At December 31, 2018, the market values of the securities were as follows: $$\begin{array} { l c } 
\text { Security } & \text { Market Value per Bond } \
\hline \text { Nugent } & \$ 720 \
\text { Alfredo } & \$ 640
\end{array}$$ Required:
(1.) Prepare the journal entries to record the acquisition of the two investments.
(2.) Prepare any necessary adjusting entries assuming the bonds are both classified as available for sale securities.

Quizplus · Accepted Answer

The Answer of During 2018, Largent Enterprises purchased bonds as follows:
May 17, Purchased 100 Nugent bonds for $800 per bond.
July 12, Purchased 40 Alfredo bonds at $600 per bond, plus a $600 brokerage commission.
Largent accounts for these investments as securities available for sale. At December 31, 2018, the market values of the securities were as follows: $$\begin{array} { l c } 
\text { Security } & \text { Market Value per Bond } \
\hline \text { Nugent } & \$ 720 \
\text { Alfredo } & \$ 640
\end{array}$$ Required:
(1.) Prepare the journal entries to record the acquisition of the two investments.
(2.) Prepare any necessary adjusting entries assuming the bonds are both classified as available for sale securities.

During 2018, Largent Enterprises Purchased Bonds as Follows: May 17

During 2018, Largent Enterprises Purchased Bonds as Follows:
May 17