1/2026 78,000 Rain Technology sold the bonds on July 14, 2027, for $81,000. Required: 1. Prepare Rain Technology’s entry to record interest received on March 31, 2024. 2. Assuming that Rain purchased the bonds as trading securities, prepare journal entries at the end of each year and on the date of sale. Ignore interest. 3. Assuming that Rain purchased the bonds as available-for-sale securities, prepare journal entries at the end of each year and on the date of sale. Ignore interest. Note: If no entry is required for a tran
On January 1, 2024, Rain Technology purchased at par $76,000, 4 percent, bonds of Lightyear Services Company. The bonds pay interest quarterly on March 31, June 30, September 30, and December 31. Rain Technology’s year ends on December 31. The following information applies to the fair value of Lightyear Services’ bonds:
| Bond Price | |
|---|---|
| 12/31/2024 | $74,000 |
| 12/31/2025 | 83,000 |
| 12/31/2026 | 78,000 |
Rain Technology sold the bonds on July 14, 2027, for $81,000.
Required:
1. Prepare Rain Technology’s entry to record interest received on March 31, 2024.
2. Assuming that Rain purchased the bonds as trading securities, prepare journal entries at the end of each year and on the date of sale. Ignore interest.
3. Assuming that Rain purchased the bonds as available-for-sale securities, prepare journal entries at the end of each year and on the date of sale. Ignore interest.
Note: If no entry is required for a transaction/event, select "No
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