PROBLEM 17A.

1
Imperial Motors
General Journal

a.
2016
(1)
Apr 1 Marketable Debt Securities $ 441,000
Bond Interest Receivable 3,000
Cash $ 444,000
Purchased $450,000 face value of 8% Crest Theatres
bonds at 98, plus one month accrued interet
(450,000 x 8%x 1/12 = $3,000)

(2)
Sept 1 Cash $ 18,000
Bond Interest Receivable $ 3,000
Bonds Interest Revenue 15,000
Received semiannual interest payment on crest
Theatres bonds ($450,000 x 8% x 1/2 = $18,000)

(3)
Dec 31 Bond Interest Receivable $ 12,000
Bond Interest Revenue $ 12,000
To accrue interest earned on Crest Theatres bonds
since Sept.1 ($450,000 x 8% x 4/12 = $12,000)

b.
2017
(1)
Jan 31 Bond Interest Receivable $ 3,000
Bond Interest Revenue $ 3,000
To accrue interest earned on Crest Theatres bonds
since Sept.1 ($450,000 x 8% x 1/12 = $3,000)

(2)
Jan 31 Cash $ 459,700
Marketable Debt Securities $ 441,000
Bonds Interest Receivable 15,000
Gain on Sale of Marketable Securities 3,700
To record sale of Crest Theatres bonds at 4444,700
pls five months' accrued interest ($450,000 x 8%
x 5/12 = $15,000).
 PROBLEM 17A.2
Talley Manufacturing Company

General Journal

Jan ## Marketable Equity Securities $ 260,400

Cash $ 260,400.00
Purchased $4,000 shares of Raleigh Corporation common
stock at $64.75 plus brokerage commission of $1,400

Mar ## Cash $ 5,000

Dividend Revenue $ 5,000.00
Received dividend on raleigh corporation stock
4,000 shares @ $1.25

June ## Memorandum entry: Received 200 shares of

Raleigh Corporation stock, representing 5% stock
dividend. Now own 4,200 shares with cost basis of
$260,400 or $62 per share

July ## Memorandum entry: Received 4,200 additional shares

of Raleigh Corporation stock, as a result of 2- for-1 split
Now own 8,400 shares with cost basis of
$260,400 or $31 per share

Sept ## Cash $ 5,880

Dividend Revenue $ 5,880.00
Received dividend on raleigh corporation stock
8,400 shares @ $0.7

Dec ## Cash $ 86,400

Loss on Sale of Marketable Securities 6,600
Marketable Equity Securities $ 93,000.00
Sale of 3,000 shares of Raleigh corporation stock at $29
less commission charges of $600. Cost of shares sold,
3,000 shares x $31 per share = $93,000.

Dec ## Unrealized Loss on Marketable Equity Securities $ 13,500

Marketable Equity Securities $ 13,500
Mark to market of Raleigh Co. Shares:
Cost (5,400 shares x $ 31per share)....$167,400
MV (5,400 shares x $28.5 per share)...$153,900
Unrealized Loss.. $ 13,500
 PROBLEM 17A.3
Talley Manufacturing Company

General Journal

a.
Jan 21 Cash $ 3,600
Dividend Revenue $ 3,600
Received cash dividend of $0.90 per share on 4,000
shares of Ryan Corpoartion common stock

Feb 8 Marketable Equity Securities $ 60,000

Cash $ 60,000
Purchased $1,500 shares of Gramm Co. common
stock at $39.75 plus brokerage commission of $375.
Cost basis $40 per share.

Mar 15 Memorandum entry: Received 1,500 additional shares

of Gramm Co.common stock, as a result of 2- for-1 split
Now own 3,000 shares with cost basis of $60,000, or
$20 per share

Apr 30 Cash $ 18,000

Bond Interest Receivable $ 6,000
Bonds Interest Revenue 12,000
Received semiannual interest payment on Micro Computer
Co. 12% bonds ($300,000 x 12% x 1/2 = $18,000)

May 31 Cash $ 207,425

Marketable Debt Securities $ 198,000
Bonds Interest Revenue 2,000
Gain on Sale of Marketable Securities 7,425
To record sale of 200 micro Computer co. bonds at 103
plus one month accrued interest, less $ 575 commission
(Cost= 200 bonds x $990 = $198,000).

July 21 Cash $ 4,200

Dividend Revenue $ 4,200
Received cash dividend of $1.05 per share on 4,000
shares of Ryan Corpoartion common stock

Oct 18 Memorandum entry: Received additional 200 shares

of Ryan Co.common stock, as a result of 5% stock dividend
Now own 4,200 shares with cost basis of $210,000, or
$50 per share
Oct 19 Cash $ 56,150
Loss on Sale of Marketable Securities 3,850
Marketable Equity Securities $ 60,000
Sale of 1,200 shares of Rayan Co. stock at $47,
less commission charges of $250. Cost of shares sold,
12000 shares x $50 per share = $60,000.

Oct 31 Cash $ 6,000

Bond Interest Revenue $ 6,000
Received Semiannual interest on Micro computers Co
bonds ($100,000 x 12% x 1/2 = $6,000)

Dec 31 Bond Interest Receivable $ 2,000

Bond Interest Revenue $ 2,000
To accrue 2 months interest earned on Micro computers Co
12 %bonds since Oct.31 ($100,000 x 12% x 2/12 = $2,000)

b.c.
COST MV
3,000 shares of Ryan Corporation common stock; cost
basis $50 per share $ 150,000 $ 138,000
3,000 shares of Gramm Co common stock; cost basis
$20 per share 60,000 64,500
100 bonds of Micro Computers co. 99,000 102,500
$ 309,000 $ 305,000

Dec 31 Unrealized loss on marketable equity securities 7,500

Marketable Equity Securities 7,500

Marketable Debt Securities 3,500

Unrealized gain on marketable debt securities 3,500