arkerDIXONNO 2TI-30XATEXAS INSTRUMENTSНАON/CLNOFFapter 15 Investments and Fair Value AccountingOBJ. 2isesGonzalez Company acquired $200,000 of Walker Co., 6% bonds on May 1 at their faceamount. Interest is paid semiannually on May 1 and November 1. On November 1,Gonzalez Company sold $70,000 of the bonds for 97.Journalize entries to record the following in Year 1:EX 15-1 Entries for investment in bonds, interest, and sale of bondsa. The initial acquisition of the bonds on May 1.b. The semiannual interest received on November 1.C. The sale of the bonds on November 1.d. The accrual of $1,300 interest on December 31.X.

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Asked Feb 25, 2020
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Confused on Ex15-1. How would I journalize?

arker
DIXON
NO 2
TI-30XA
TEXAS INSTRUMENTS
НА
ON/C
LN
OFF
apter 15 Investments and Fair Value Accounting
OBJ. 2
ises
Gonzalez Company acquired $200,000 of Walker Co., 6% bonds on May 1 at their face
amount. Interest is paid semiannually on May 1 and November 1. On November 1,
Gonzalez Company sold $70,000 of the bonds for 97.
Journalize entries to record the following in Year 1:
EX 15-1 Entries for investment in bonds, interest, and sale of bonds
a. The initial acquisition of the bonds on May 1.
b. The semiannual interest received on November 1.
C. The sale of the bonds on November 1.
d. The accrual of $1,300 interest on December 31.
X.
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arker DIXON NO 2 TI-30XA TEXAS INSTRUMENTS НА ON/C LN OFF apter 15 Investments and Fair Value Accounting OBJ. 2 ises Gonzalez Company acquired $200,000 of Walker Co., 6% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Gonzalez Company sold $70,000 of the bonds for 97. Journalize entries to record the following in Year 1: EX 15-1 Entries for investment in bonds, interest, and sale of bonds a. The initial acquisition of the bonds on May 1. b. The semiannual interest received on November 1. C. The sale of the bonds on November 1. d. The accrual of $1,300 interest on December 31. X.

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Expert Answer

Step 1

Record journal entries for the bonds as shown below:

 

a. Entry for acquisition of bonds.

 

Accounting homework question answer, step 1, image 1

 

b. Entry for semi-annual interest received on bonds.

 

Accounting homework question answer, step 1, image 2

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