Problem 2:

Never use plagiarized sources. Get Your Original Essay on
Question: Problem 2: Crystal Creek Ltd. has the following securities in its available-for-sale portfolio: …
Hire Professionals Just from $11/Page
Order Now Click here

Crystal Creek Ltd. has the following securities in its
available-for-sale portfolio:

Amortized Cost

Fair value, March 31

Fair value, June 30

US Treasury notes

$20,000

$25,000

$24,000

Corporate A bonds

$31,000

$30,000

$37,000

UK Government bonds

$70,000

NA

$59,000

Corporate B bonds

$46,000

$48,000

NA

On April 19, Crystal Creek sold Corp B bonds for $49,000; on May
27, Crystal Creek purchased UK Government bonds for $70,000; on
June 3, Crystal Creek received 00 interest payment from
Corporate A. Assume these bonds were purchased at par, i.e. the
purchase price was equal to face amount.

Required:

Prepare journal on April 19, May 27, and June 3 to record the
above transactions.

Prepare the adjusting entry on June 30 required to prepare
quarterly financial statements.

Prepare the partial balance sheet on June 30.

Suppose the portfolio is classified as trading securities. Redo
parts 2 and 3.

Open chat
Lets chat on via WhatsApp
Hello, Welcome to our WhatsApp support. Reply to this message to start a chat.