Refer to the information in RE15 1. Assume that on December 31, Year 1, the investment in Smith Corporation bonds has a market value of $12,300 and the investment in Bike Company stock has a market value of $5,500. Prepare the year end journal entry to record the unrealized gain or loss.
In RE 15 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.