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a. The purchase of the bonds on May 11 plus 40 days of accrued interest. Year 1 May 11 Investments-Lumpkin County Bonds v 78,000 Interest Receivable v 606 X Cash v 78,606 X Feedback Check My Work b. Semiannual interest on October 1. Year 1 Oct. 1 Cash 2,730 V Interest Receivable 606 X Interest Revenue v 2,124 X 00

a. The purchase of the bonds on May 11 plus 40 days of accrued interest. Year 1 May 11 Investments-Lumpkin County Bonds v 78,000 Interest Receivable v 606 X Cash v 78,606 X Feedback Check My Work b. Semiannual interest on October 1. Year 1 Oct. 1 Cash 2,730 V Interest Receivable 606 X Interest Revenue v 2,124 X 00

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 1E: Parilo Company acquired 170,000 of Makofske Co., 5% bonds on May 1, 2016, at their face amount....
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Check My Work c. Sale of the bonds on October 31. Cash Year 1 Oct. 31 30,140 V Loss on Sale of Investments 35 Interest Revenue v 30,000 x Investments-Lumpkin County Bonds v 175 X Feedback Check My Work d. Adjusting entry for accrued interest on December 31, Year 1. Interest Receivable Year 1 Dec. 31 849 Interest Revenue 849 Feedback Check My Work
Transcribed Image Text:Check My Work c. Sale of the bonds on October 31. Cash Year 1 Oct. 31 30,140 V Loss on Sale of Investments 35 Interest Revenue v 30,000 x Investments-Lumpkin County Bonds v 175 X Feedback Check My Work d. Adjusting entry for accrued interest on December 31, Year 1. Interest Receivable Year 1 Dec. 31 849 Interest Revenue 849 Feedback Check My Work
Gillooly Co. purchased $78,000 of 7%, 10-year Lumpkin County bonds on May 11, Year 1, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, Year 1, Gillooly Co. sold $30,000 of the Lumpkin County bonds at 101 plus $175 accrued interest less a $335 brokerage commission. Journalize the entries to record the following: Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Assume a 360-day year. a. The purchase of the bonds on May 11 plus 40 days of accrued interest. Year 1 May 11 Investments-Lumpkin County Bonds 78,000 Interest Receivable v 606 X Cash 78,606 X Feedback Check My Work b. Semiannual interest on October 1. Cash Year 1 Oct. 1 2,730 Interest Receivable 606 X Interest Revenue 2,124 X Feedback
Transcribed Image Text:Gillooly Co. purchased $78,000 of 7%, 10-year Lumpkin County bonds on May 11, Year 1, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, Year 1, Gillooly Co. sold $30,000 of the Lumpkin County bonds at 101 plus $175 accrued interest less a $335 brokerage commission. Journalize the entries to record the following: Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Assume a 360-day year. a. The purchase of the bonds on May 11 plus 40 days of accrued interest. Year 1 May 11 Investments-Lumpkin County Bonds 78,000 Interest Receivable v 606 X Cash 78,606 X Feedback Check My Work b. Semiannual interest on October 1. Cash Year 1 Oct. 1 2,730 Interest Receivable 606 X Interest Revenue 2,124 X Feedback
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