Gaelic Industries Inc. is an athletic footware company that began operations on January 1, 2016. The following transactions relate to debt investments acquired by Gaelic Industries Inc., which has a fiscal year ending on December 31: 2016 May 1. Purchased $75,000 of Avery Co. 7%, 15-year bonds at their face amount plus accrued interest of $875. The bonds pay interest semiannually on March 1 and September 1. May 16. Purchased $60,000 of Clawhammer 6%, 10-year bonds at their face amount plus accrued interest of $150. The bonds pay interest semiannually on May 1 and November 1. September 1. Received semiannual interest on the Avery Co. bonds. September 30. Sold $30,000 of Avery Co. bonds at 98 plus accrued interest of $175. November 1. Received semiannual interest on the Clawhammer bonds. December 31. Accrued $1,050 interest on the Avery Co. bonds. December 31. Accrued $600 interest on the Clawhammer bonds. 2017 March 1. Received semiannual interest on the Avery Co. bonds. May 1. Received semiannual interest on the Clawhammer bonds. Instructions Journalize the entries to record these transactions.

Gaelic Industries Inc. is an athletic footware company that began operations on January 1, 2016. The following transactions relate to debt investments acquired by Gaelic Industries Inc., which has a fiscal year ending on December 31: 2016 May 1. Purchased $75,000 of Avery Co. 7%, 15-year bonds at their face amount plus accrued interest of $875. The bonds pay interest semiannually on March 1 and September 1. May 16. Purchased $60,000 of Clawhammer 6%, 10-year bonds at their face amount plus accrued interest of $150. The bonds pay interest semiannually on May 1 and November 1. September 1. Received semiannual interest on the Avery Co. bonds. September 30. Sold $30,000 of Avery Co. bonds at 98 plus accrued interest of $175. November 1. Received semiannual interest on the Clawhammer bonds. December 31. Accrued $1,050 interest on the Avery Co. bonds. December 31. Accrued $600 interest on the Clawhammer bonds. 2017 March 1. Received semiannual interest on the Avery Co. bonds. May 1. Received semiannual interest on the Clawhammer bonds. Instructions Journalize the entries to record these transactions.

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

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