Refer to the information in RE13-5. Assume that on June 30, Aggie received interest on the Smith Corporation bonds. Prepare the June 30 journal entries to record the receipt of the interest.
On April 30, 2019, Aggie Corporation purchased Smith Corporation 10%, 5-years bonds with a face value of $12,000 at par plus four months of accrued interest. Prepare the April 30 journal entry to record the purchase of these available-for-sale securities.
Record the journal entry for the receipt of interest in the books of Corporation A.
Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.
Record the journal entry for the receipt of interest in the books of Corporation A.
Date | Account title and explanation | Debit ($) | Credit ($) |
April 30 | Cash |
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