Apr. 1 Purchased for cash $420,000 of Vasquez City 6% bonds at 100 plus accrued interest of $6,300. June 30 Received first semiannual interest payment. July 31 Sold $210,000 of the bonds at 99 plus accrued interest of $1,050. Aug. 1 Received face value of remaining bonds at their maturity. Required: Journalize the entries to record the above selected bond investment transactions for Beacon Trust.
Apr. 1 Purchased for cash $420,000 of Vasquez City 6% bonds at 100 plus accrued interest of $6,300. June 30 Received first semiannual interest payment. July 31 Sold $210,000 of the bonds at 99 plus accrued interest of $1,050. Aug. 1 Received face value of remaining bonds at their maturity. Required: Journalize the entries to record the above selected bond investment transactions for Beacon Trust.
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 4E
Related questions
Question
Apr. | 1 | Purchased for cash $420,000 of Vasquez City 6% bonds at 100 plus accrued interest of $6,300. |
June | 30 | Received first semiannual interest payment. |
July | 31 | Sold $210,000 of the bonds at 99 plus accrued interest of $1,050. |
Aug. | 1 | Received face |
Required:
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