Apr. 1 Purchased for cash $338,000 of Vasquez City 3% bonds at 100 plus accrued interest of $2,535. June 30 Received first semiannual interest payment. July 31 Sold $158,400 of the bonds at 95 plus accrued interest of $396. Aug. 1 Received face value of remaining bonds at their maturity.
Apr. 1 Purchased for cash $338,000 of Vasquez City 3% bonds at 100 plus accrued interest of $2,535. June 30 Received first semiannual interest payment. July 31 Sold $158,400 of the bonds at 95 plus accrued interest of $396. Aug. 1 Received face value of remaining bonds at their maturity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
why are these wrong
Transcribed Image Text:Apr.
1
Purchased for cash $338,000 of Vasquez City 3% bonds at 100 plus accrued interest of $2,535.
June
30
Received first semiannual interest payment.
July
31
Sold $158,400 of the bonds at 95 plus accrued interest of $396.
Aug.
1
Received face value of remaining bonds at their maturity.
Required:
Journalize the entries to record the above selected bond investment transactions for Beacon Trust. Refer to the chart of accounts for the exact
wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit
entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Transcribed Image Text:DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIE
Apr. 01
Investments-Vasquez City Bonds
338,000.00
1
Interest Receivable
2,535.00
3
Cash
340,535.00
4
Jun. 30 Cash
5,070.00
5
Interest Receivable
2,535.00
Interest Revenue
2,535.00
Jul. 31
Cash
150,876.00
8
Loss on Sale of Investments
7,920.00
Interest Revenue
396.00
10
Investments-Vasquez City Bonds
158,400.00
11
Aug. 1 Cash
158,400.00
12
Investments-Vasquez City Bonds
158,400.00
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