Entries for bond (held-to-maturity) investments Gillooly Co. purchased $360,000 of 6%, 20-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 $90,000 of the Lumpkin County bonds at 98 plus $450 accrued interest less a $200 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 fill in the blank fill in the blank Interest Receivable fill in the blank fill in the blank Cash fill in the blank fill in the blank b. Semiannual interest on October 1. Year 1 Oct. 1 Cash fill in the blank fill in the blank Interest Receivable fill in the blank fill in the blank Interest Revenue fill in the blank fill in the blank Feedback c. Sale of the bonds on October 31. Year 1 Oct. 31 Cash fill in the blank fill in the blank Loss on Sale of Investments fill in the blank fill in the blank Interest Receivable fill in the blank fill in the blank Investments-Lumpkin County Bonds fill in the blank fill in the blank Feedback d. Adjusting entry for accrued interest on December 31, Year 1. Year 1 Dec. 31 fill in the blank fill in the blank fill in the blank fill in the blank Feedback e. The receipt of the face value of the remaining bonds at their maturity on April 1, Year 20. Year 20 Apr. 1 fill in the blank fill in the blank fill in the blank fill in the blank

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 13M

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Entries for bond (held-to-maturity) investments

Gillooly Co. purchased $360,000 of 6%, 20-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 $90,000 of the Lumpkin County bonds at 98 plus $450 accrued interest less a $200 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	fill in the blank	fill in the blank
	Interest Receivable	fill in the blank	fill in the blank
	Cash	fill in the blank	fill in the blank

b. Semiannual interest on October 1.

Year 1 Oct. 1	Cash	fill in the blank	fill in the blank
	Interest Receivable	fill in the blank	fill in the blank
	Interest Revenue	fill in the blank	fill in the blank

Feedback

c. Sale of the bonds on October 31.

Year 1 Oct. 31	Cash	fill in the blank	fill in the blank
	Loss on Sale of Investments	fill in the blank	fill in the blank
	Interest Receivable	fill in the blank	fill in the blank
	Investments-Lumpkin County Bonds	fill in the blank	fill in the blank

Feedback

d. Adjusting entry for accrued interest on December 31, Year 1.

Year 1 Dec. 31		fill in the blank	fill in the blank
		fill in the blank	fill in the blank

Feedback

e. The receipt of the face value of the remaining bonds at their maturity on April 1, Year 20.

Year 20 Apr. 1		fill in the blank	fill in the blank
		fill in the blank	fill in the blank

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