10. Float Corporation had the following transactions pertaining to debt investments. Jan. 1 Purchased 100 8%, $1,000 Qaiz Co. bonds for $100,000 cash plus brokerage fees of $1,800. Interest is payable semiannually on July 1 and January 1. Received semiannual interest on Qaiz Co. bonds. Sold 60 Qaiz Co. bonds for $68,000 less $1,000 brokerage fees. July 1 July 1 Required: a) Journalize the transactions. b) Prepare the adjusting entry for the accrual of interest at December 31.

10. Float Corporation had the following transactions pertaining to debt investments. Jan. 1 Purchased 100 8%, $1,000 Qaiz Co. bonds for $100,000 cash plus brokerage fees of $1,800. Interest is payable semiannually on July 1 and January 1. Received semiannual interest on Qaiz Co. bonds. Sold 60 Qaiz Co. bonds for $68,000 less $1,000 brokerage fees. July 1 July 1 Required: a) Journalize the transactions. b) Prepare the adjusting entry for the accrual of interest at December 31.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2TP: Below is select information from two, independent companies. Additional information includes: On...

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Similar questions

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Q7- Khalid Corporation had the following transactions relating to debt investments: Jan. 1 Purchased 50, $1,000, 12% Naved Company bonds for $50,000 plus broker's fees of $1,500. Interest is payable semiannually on January 1 and July 1. July 1 Received semiannual interest from Naved Company bonds. July 1 Sold 30 Naved Company bonds for $30,000, less $800 broker's fees. Instructions (a). Journalize the transactions, and (b). prepare the adjusting entry for the accrual of interest on December 31.