Response to the following :
Refer to the information in problem-1. Assume that on February 1, Year 2, the Aggie Corporation sold its investment in Bike Company stock for $6,400. Prepare the journal entries of Aggie Corporation to record the sale and adjustment of the unrealized gain or loss.
Problem-1
On April 30 of Year 1, the Aggie Corporation purchased available-for-sale securities. These securities consisted of (a) Smith Corporation 10%, five-year bonds with a face value of $12,000, which were purchased at par plus four months of accrued interest and (b) 300 shares of Bike Company common stock, which were purchased at $20 per share. Prepare the April 30 journal entry to record the purchase of these available-for-sale securities.