From the information in BE5-3, prepare the journal entries to record these transactions on Bernadina Company’s books under a perpetual inventory system.

Compute the amount to be paid for each of the four separate invoices assuming that all invoices are paid within the discount period.

Merchandise (gross): $10,000

Terms: 3/15, n/45

Prepare the journal entries to record the transactions related in the previous exercise.

Prepare journal entries to record the following adjustments.

B. Depreciation on assets, $4,800

Brooks Co. purchases debt investments as trading securities at a cost of $66,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of$72,000.

1. Prepare the December 27 entry for the purchase of debt investments.
2. Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio.
3. Prepare the January 3 entry when Brooks sells a portion of its trading securities (costing $3,000) for$4,000 cash.

Brooks Co. purchases debt investments as trading securities at a cost of $66,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of$72,000.

1. Prepare the December 27 entry for the purchase of debt investments.

2. Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio.

3. Prepare the January 3 entry when Brooks sells a portion of its trading securities (costing $3,000) for$4,000 cash.

Brooks Co. purchases debt investments as trading securities at a cost of $66,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of$72,000.

1. Prepare the December 27 entry for the purchase of debt investments.

2. Prepare the December 31 year-end fair value adjusting entry for the trading securities’ portfolio.

3. Prepare the January 3 entry when Brooks sells a portion of its trading securities (costing $3,000) for$4,000 cash.

Prepare Natura Co.'s journal entries to record the following transactions involving its short-term investments in held-to-maturity debt securities, all of which occurred during the current year.

a. On June 15, paid $1,000 cash to purchase Remed's 90-day short-term debt securities ($1,000 principal), dated June 15, that pay 10% interest.

b. On September 16, received a check from Remed in payment of the principal and 90 days' interest on the debt securities purchased in part a.

Prepare Garzon Company's journal entries to record the following transactions for the current year.

Jan.  1 Purchases 6% bonds (as a held-to-maturity investment) issued by PBS at a cost of $40,000, which is the par value.
July  1 Receives first semiannual payment of interest from PBS bonds.
Dec. 31 Receives a check from PBS in payment of principal ($40,000) and the second semiannual payment of interest.

Answer “true” or “false” to the following statements: The purpose of the premise or premises is to set forth the reasons or evidence given in support of the conclusion.

Prepare the journal entries to record the following transactions on Horst Company’s books using a perpetual inventory system.

(c) On March 12, Horst Company received the balance due from Bernadina Company.

Prepare the journal entries to record the transaction below on Novy Company’s books using a perpetual inventory system.

On March 12, Novy Company received the balance due from Opps Company.

Prepare the journal entries to record these transactions on Kimbrel Company’s books using a periodic inventory system.

(a) On March 2, Kimbrel Company purchased $800,000 of merchandise from Pineda Company, terms 2/10, n/30.

(b) On March 6, Kimbrel Company returned$95,000 of the merchandise purchased on March 2.

(c) On March 12, Kimbrel Company paid the balance due to Pineda Company.

Refer to the earlier exercise.

1. Prepare the journal entry to record the purchase of raw materials.
2. Prepare the journal entry to record the issuance of raw materials to production.