On January 1, 2024, Richetti Ltd. purchased $232,000 of 11%, 10-year bonds at face value (100) with the intention of selling the bonds early the next year. Richetti receives interest semi-annually on July 1 and January 1. At December 31, 2024, which is the company's fiscal year end, the bonds were trading in the market at 98. Assume that Richetti sold the bonds for $227,360 on January 2, 2025. Record the collection of the interest and the sale of the bonds. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 2, 2025 Cash Trading Investments No Entry No Entry Debit 227360 Credit 2273€
On January 1, 2024, Richetti Ltd. purchased $232,000 of 11%, 10-year bonds at face value (100) with the intention of selling the bonds early the next year. Richetti receives interest semi-annually on July 1 and January 1. At December 31, 2024, which is the company's fiscal year end, the bonds were trading in the market at 98. Assume that Richetti sold the bonds for $227,360 on January 2, 2025. Record the collection of the interest and the sale of the bonds. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 2, 2025 Cash Trading Investments No Entry No Entry Debit 227360 Credit 2273€
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 3C
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