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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ab675ce-2e40-481e-8381-32ae8424bad9%2Fa2b90a53-49b1-4aa5-baa4-f603a63561c2%2Fvc2pqqb_processed.png&w=3840&q=75)
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.
![Bond (Held-to-Maturity) Investments
Instructions
Chart of Accounts
Journal
Journal
JOURNAL
ACCOUNTING EQUATI
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
1
2
3
5
6
7
8
9
10
11
12
4-](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ab675ce-2e40-481e-8381-32ae8424bad9%2Fa2b90a53-49b1-4aa5-baa4-f603a63561c2%2Fdvnfq9_processed.png&w=3840&q=75)
Transcribed Image Text:Bond (Held-to-Maturity) Investments
Instructions
Chart of Accounts
Journal
Journal
JOURNAL
ACCOUNTING EQUATI
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
1
2
3
5
6
7
8
9
10
11
12
4-
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Step 1
Journal is a place where accounting transactions are listed in the book keeping system before ledger accounts.
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