Twinings Co.'s long-term available-for-sale portfolio at the start of this year consists of the following.
Available-for-Sale Securities
Company A bonds
Company B notes
Company C bonds
Cost
Fair Value
$ 772,500
$ 680,850
211,600
207,000
798,160
895,710
Twinings enters into the following transactions involving its available-for-sale debt securities this year.
January 29 Sold one-half of the notes of Company B for $104,880.
July 6 Purchased bonds of Company X for $131,000.
November 13 Purchased notes of Company Z for $304,000.
December 9 Sold all of the bonds of Company A for $757,050.
Fair values at December 31 are: B, $107,900; C,$799,000; X, $123,000; and Z, $315,000.
Requirement
General
Journal
General
Fair Value
Trial Balance
Ledger
Adjustment
Transaction
Analysis
Prepare journal entries to record each of the transactions and events. Prepare the year-end adjustment to fair value, if any.
View transaction list
Journal entry worksheet
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Sold one-half of the notes of Company B for $104,880.
Note: Enter debits before credits.
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