The following bond investment transactions were completed by Starks Company: Jan. 31 Purchased 42, $1,000 government bonds at 100 plus accrued interest of $210 (1 month). The bonds pay 6% annual interest on July 1 and January 1. July 1 Received semiannual interest on bond investment. Aug. 30 Sold 18, $1,000 bonds at 98 plus $180 accrued interest (2 months). a. Journalize the entries for these transactions. Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Jan. 31 - Select - - Select - - Select - - Select - - Select - - Select - July 1 - Select - - Select - - Select - - Select - - Select - - Select - Aug. 30 - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - b. Journalize the December 31 adjusting entry for semiannual interest earned on the bonds. Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Dec. 31 - Select - - Select - - Select - - Select - c. Journalize the receipt of $24,000 at the bonds’ maturity on July 1. If an amount box does not require an entry, leave it blank. July. 1 - Select - - Select - - Select - - Select -
The following bond investment transactions were completed by Starks Company: Jan. 31 Purchased 42, $1,000 government bonds at 100 plus accrued interest of $210 (1 month). The bonds pay 6% annual interest on July 1 and January 1. July 1 Received semiannual interest on bond investment. Aug. 30 Sold 18, $1,000 bonds at 98 plus $180 accrued interest (2 months). a. Journalize the entries for these transactions. Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Jan. 31 - Select - - Select - - Select - - Select - - Select - - Select - July 1 - Select - - Select - - Select - - Select - - Select - - Select - Aug. 30 - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - b. Journalize the December 31 adjusting entry for semiannual interest earned on the bonds. Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Dec. 31 - Select - - Select - - Select - - Select - c. Journalize the receipt of $24,000 at the bonds’ maturity on July 1. If an amount box does not require an entry, leave it blank. July. 1 - Select - - Select - - Select - - Select -
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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Question
The following bond investment transactions were completed by Starks Company:
Jan. 31 | Purchased 42, $1,000 government bonds at 100 plus accrued interest of $210 (1 month). The bonds pay 6% annual interest on July 1 and January 1. |
July 1 | Received semiannual interest on bond investment. |
Aug. 30 | Sold 18, $1,000 bonds at 98 plus $180 accrued interest (2 months). |
a.
Jan. 31 |
|
- Select - | - Select - |
|
- Select - | - Select - | |
|
- Select - | - Select - | |
July 1 |
|
- Select - | - Select - |
|
- Select - | - Select - | |
|
- Select - | - Select - | |
Aug. 30 |
|
- Select - | - Select - |
|
- Select - | - Select - | |
|
- Select - | - Select - | |
|
- Select - | - Select - |
b. Journalize the December 31
Dec. 31 |
|
- Select - | - Select - |
|
- Select - | - Select - |
c. Journalize the receipt of $24,000 at the bonds’ maturity on July 1. If an amount box does not require an entry, leave it blank.
July. 1 |
|
- Select - | - Select - |
|
- Select - | - Select - |
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