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Up There IQ Inc. is a Gifted & Talented recruiting company that began operations on January 1, 20X1. The following transactions relate to debt investments acquired by Up There IQ Inc., which has a fiscal year ending on December 31: 20X1 Purchased $75,000 of Brainy 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 Purchased $60,000 of Einstein Inc. Co. 6%, 10-year bonds at their face amount plus accrued interest of $150. The bonds pay interest semiannually on May 1 and November 1 Received semiannual interest on the Brainy Co. bonds Sold $30,000 of Brainy Co. bonds at 98 plus accrued interest of $175 Мaу, 1 Маy 16 Sept. 1 Sept. 30 Nov. 1 Received semiannual interest on the Einstein Inc. Co. bonds. Accrued $1,050 interest on the Brainy Co. bonds. Accrued $600 interest on the Einstein Inc. Co. bonds Dec. 31 Dec. 31 20X2 Mar. 1 Received semiannual interest on the Brainy Co. bonds May 1 Received semiannual interest on the Einstein Inc. Co. bonds а. Prepare the journal entries for the above transactions

Up There IQ Inc. is a Gifted & Talented recruiting company that began operations on January 1, 20X1. The following transactions relate to debt investments acquired by Up There IQ Inc., which has a fiscal year ending on December 31: 20X1 Purchased $75,000 of Brainy 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 Purchased $60,000 of Einstein Inc. Co. 6%, 10-year bonds at their face amount plus accrued interest of $150. The bonds pay interest semiannually on May 1 and November 1 Received semiannual interest on the Brainy Co. bonds Sold $30,000 of Brainy Co. bonds at 98 plus accrued interest of $175 Мaу, 1 Маy 16 Sept. 1 Sept. 30 Nov. 1 Received semiannual interest on the Einstein Inc. Co. bonds. Accrued $1,050 interest on the Brainy Co. bonds. Accrued $600 interest on the Einstein Inc. Co. bonds Dec. 31 Dec. 31 20X2 Mar. 1 Received semiannual interest on the Brainy Co. bonds May 1 Received semiannual interest on the Einstein Inc. Co. bonds а. Prepare the journal entries for the above transactions

Financial Accounting
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 5E
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Up There IQ Inc. is a Gifted & Talented recruiting company that began operations on January 1, 20X1. The following transactions relate to debt investments acquired by Up There IQ Inc., which has a fiscal year ending on December 31: 20X1 Purchased $75,000 of Brainy 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 Purchased $60,000 of Einstein Inc. Co. 6%, 10-year bonds at their face amount plus accrued interest of $150. The bonds pay interest semiannually on May 1 and November 1 Received semiannual interest on the Brainy Co. bonds Sold $30,000 of Brainy Co. bonds at 98 plus accrued interest of $175 May, 1 May 16 Sept. 1 Sept. 30 Nov. 1 Received semiannual interest on the Einstein Inc. Co. bonds. Accrued $1,050 interest on the Brainy Co. bonds. Accrued $600 interest on the Einstein Inc. Co. bonds Dec. 31 Dec. 31 20X2 Mar. 1 Received semiannual interest on the Brainy Co. bonds May 1 Received semiannual interest on the Einstein Inc. Co. bonds a. Prepare the journal entries for the above transactions
Transcribed Image Text:Up There IQ Inc. is a Gifted & Talented recruiting company that began operations on January 1, 20X1. The following transactions relate to debt investments acquired by Up There IQ Inc., which has a fiscal year ending on December 31: 20X1 Purchased $75,000 of Brainy 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 Purchased $60,000 of Einstein Inc. Co. 6%, 10-year bonds at their face amount plus accrued interest of $150. The bonds pay interest semiannually on May 1 and November 1 Received semiannual interest on the Brainy Co. bonds Sold $30,000 of Brainy Co. bonds at 98 plus accrued interest of $175 May, 1 May 16 Sept. 1 Sept. 30 Nov. 1 Received semiannual interest on the Einstein Inc. Co. bonds. Accrued $1,050 interest on the Brainy Co. bonds. Accrued $600 interest on the Einstein Inc. Co. bonds Dec. 31 Dec. 31 20X2 Mar. 1 Received semiannual interest on the Brainy Co. bonds May 1 Received semiannual interest on the Einstein Inc. Co. bonds a. Prepare the journal entries for the above transactions
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