Response to the following :
Refer to the information in problem-1. Assume that on June 30, Aggie Corporation received interest on the Smith Corporation bonds, as well as a $1 dividend per share interest on the Bike Company stock. Prepare the June 30 journal entries to record the receipt of the interest and the receipt of the dividends.
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.