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of $25 a share. Eck sold the shares for $40 a share. The entry to
record the sale is
Cash 10,000
Gain on Sale of Stock Investments 3,750
Stock Investments 6,250
Stock Investments 10,000
Cash 10,000
Cash 10,000
Stock Investments 10,000
Cash 6,250
Loss on Sale of Stock Investments 3,750
Stock Investments 10,000
2-
Multiple Choice Question 45
On January 1, Talent Company purchased as a short-term
investment a $1,000, 8% bond for $1,050. The bond pays interest
on January 1 and July 1. The bond is sold on October 1 for $1,200
plus accrued interest. Interest has not been accrued since the last
interest payment date. What is the entry to record the cash
proceeds at the time the bond is sold?
Cash 1,200
Debt Investments 1,200
Cash 1,220
Debt Investments 1,050