933127
Dec 3, 2013, 04:45 PM
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities intending to earn profits on short-term differences in price. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2013 and the first month of 2014. The only securities held by Amalgamated at October 1 were $40 million of 12% bonds of Kansas Abstractors, Inc. purchased on May 1 at face value. The company's fiscal year ends on December 31.
2013
Oct. 18
Purchased 2 million preferred shares of Millwork Ventures Company for $57 million as a
speculative investment to be sold under suitable circumstances.
31
Received semiannual interest of $2.4 million from the Kansas Abstractors bonds.
Nov. 1
Purchased 10% bonds of Holistic Entertainment Enterprises at their $102 million face value, to be held until they mature in 2018. Semiannual interest is payable April 30 and October 31.
1
Sold the Kansas Abstractors bonds for $37 million because rising interest rates are expected to cause their fair value to continue to fall.
Dec. 1
Purchased 12% bonds of Household Plastics Corporation at their $70 million face value, to be held until they mature in 2028. Semiannual interest is payable May 31 and November 30.
20
Purchased U. S. Treasury bonds for $7.2 million as trading securities, hoping to earn profits on short-term differences in prices.
21
Purchased 4 million common shares of NXS Corporation for $48 million as trading securities, hoping to earn profits on short-term differences in prices.
23
Sold the Treasury bonds for $7.5 million.
29
Received cash dividends of $3 million from the Millwork Ventures Company preferred shares.
31
Recorded any necessary adjusting entry(s) and closing entries relating to the investments. The market price of the Millwork Ventures Company preferred stock was $27.00 per share and $14.00 per share for the NXS Corporation common. The fair values of the bond investments were $57.1 million for Household Plastics Corporation and $18.3 million for Holistic Entertainment Enterprises.
2014
Jan. 7
Sold the NXS Corporation common shares for $47 million.
Required:
Prepare the appropriate journal entry for each transaction or event. (Enter your transactions in the given order. Do not round your intermediate calculations. Enter your answers in millions rounded to 1 decimal place.)
So far this is all I have.
Here are my jounrnal entries:
2011
10/18 Investment in Milwork Ventures preferred shares Dr. 57
Cash Cr 57
10/31 Cash Dr. 2.4
Investment Revenue Cr 2.4
11/1 Investment in Holistic Entertainment bonds Dr. 102
Cash 102
11/1 Cash Dr. 37
Loss on sale of investment Dr 3
Investment in Kansas Abst. Bonds Cr 40
12/1 Investment in Household Plastics bonds Dr 70
Cash Cr. 70
12/20 Investment in US Tres. Bonds Dr. 7.2
Cash 7.2
12/21 Investment in NXS common shares Dr. 48
Cash 48
12/23 Cash Dr. 7.5
Gain on sale of investments 300k
Investments in US tres bonds 7.2
12/29 Cash Dr 3
Investment Revenue 3
I really need help with the journal entries and calculations for Dec 31 2013 and Jan 7 2014 and closing everything on Dec 31 2014. Please show me all your work if you can. The textbook and notes are not helping at all
2013
Oct. 18
Purchased 2 million preferred shares of Millwork Ventures Company for $57 million as a
speculative investment to be sold under suitable circumstances.
31
Received semiannual interest of $2.4 million from the Kansas Abstractors bonds.
Nov. 1
Purchased 10% bonds of Holistic Entertainment Enterprises at their $102 million face value, to be held until they mature in 2018. Semiannual interest is payable April 30 and October 31.
1
Sold the Kansas Abstractors bonds for $37 million because rising interest rates are expected to cause their fair value to continue to fall.
Dec. 1
Purchased 12% bonds of Household Plastics Corporation at their $70 million face value, to be held until they mature in 2028. Semiannual interest is payable May 31 and November 30.
20
Purchased U. S. Treasury bonds for $7.2 million as trading securities, hoping to earn profits on short-term differences in prices.
21
Purchased 4 million common shares of NXS Corporation for $48 million as trading securities, hoping to earn profits on short-term differences in prices.
23
Sold the Treasury bonds for $7.5 million.
29
Received cash dividends of $3 million from the Millwork Ventures Company preferred shares.
31
Recorded any necessary adjusting entry(s) and closing entries relating to the investments. The market price of the Millwork Ventures Company preferred stock was $27.00 per share and $14.00 per share for the NXS Corporation common. The fair values of the bond investments were $57.1 million for Household Plastics Corporation and $18.3 million for Holistic Entertainment Enterprises.
2014
Jan. 7
Sold the NXS Corporation common shares for $47 million.
Required:
Prepare the appropriate journal entry for each transaction or event. (Enter your transactions in the given order. Do not round your intermediate calculations. Enter your answers in millions rounded to 1 decimal place.)
So far this is all I have.
Here are my jounrnal entries:
2011
10/18 Investment in Milwork Ventures preferred shares Dr. 57
Cash Cr 57
10/31 Cash Dr. 2.4
Investment Revenue Cr 2.4
11/1 Investment in Holistic Entertainment bonds Dr. 102
Cash 102
11/1 Cash Dr. 37
Loss on sale of investment Dr 3
Investment in Kansas Abst. Bonds Cr 40
12/1 Investment in Household Plastics bonds Dr 70
Cash Cr. 70
12/20 Investment in US Tres. Bonds Dr. 7.2
Cash 7.2
12/21 Investment in NXS common shares Dr. 48
Cash 48
12/23 Cash Dr. 7.5
Gain on sale of investments 300k
Investments in US tres bonds 7.2
12/29 Cash Dr 3
Investment Revenue 3
I really need help with the journal entries and calculations for Dec 31 2013 and Jan 7 2014 and closing everything on Dec 31 2014. Please show me all your work if you can. The textbook and notes are not helping at all