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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Blanca Company has the following independent bond issuances. a.) Issues $600,000 bonds at 96. b.) Issues $700,000 bonds at 102. c.) Issues $200,000 bonds at 100. Required: 1.) Prepare the journal entries to record the bond issuances under of the independent situations.
Prepare Natura Company's journal entries to record the following transactions involving its short-term investments in held-to-maturity debt securities, all of which occurred during the current year. a. On June 15, paid $180,000 cash to purchase Remed's 90-day short-term debt securities ($180,000 principal), dated June 15, that pay 7% interest. b. On September 16, received a check from Remed in payment of the principal and 90 days' interest on the debt securities purchased in transaction a. Note: Use 360 days in a year. Do not round your intermediate calculations. View transaction list Journal entry worksheet < 1 2 On June 15, paid $180,000 cash to purchase Remed's 90-day short-term debt securities ($180,000 principal), dated June 15, that pay 7% interest. Note: Enter debits before credits. Transaction a. Record entry General Journal Clear entry Debit Credit View general journal
Bond (held-to-maturity) investments Journalize the entries to record the following selected held-to-maturity investment transactions for Beacon Trust: If an amount box does not require an entry, leave it blank. a. Purchased for cash $576,000 of Vasquez City 7% bonds at 100 plus accrued interest of $10,080. b. Received first semiannual interest payment. c. Sold $288,000 of the bonds at 99 plus accrued interest of $1,680. d. Received face value of remaining bonds at their maturity.
The following bond investment transactions were completed during a recent year by Starks Company: Year 1 Jan. 31 Purchased 75, $1,000 government bonds at 100 plus accrued interest of $313 (one month). The bonds pay 5% annual interest on July 1 and January 1. July 1 Received semiannual interest on bond investment. Aug. 30 Sold 33, $1,000 bonds at 95 plus $275 accrued interest (two months). Required: a. Journalize the entries for these transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. b. Provide the December 31, Year 1, adjusting journal entry for semiannual interest earned on the bonds.
1.Prepare Hertog Company’s journal entries to record the following transactions for the current year. May 7 Purchases Kraft bonds as a short-term investment in trading securities at a cost of $10,830. June 6 Sells its entire investment in Kraft bonds for $11,330 cash
Subject: acounting
> Entries for bond (held-to-maturity) investments The following bond investment transactions were completed by Starks Company: Jan. 31 Purchased 24, $1,000 government bonds at 100 plus accrued interest of $120 (1 month). The bonds pay 6% annual interest on July 1 and January 1. Received semiannual interest on bond investment. Sold 9, $1,000 bonds at 98 plus $90 accrued interest (2 months). July 1 Aug. 30 a. Journalize the entries for these transactions. Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Jan. 31 Investments-Government Bonds Interest Receivable ✓✓ Cash ✓ July 1 Cash ✓ Interest Receivable Interest Revenue Aug. 30 Cash Loss on Sale of Investments Interest Revenue ✓ 000 000 000 100 000 000 24,000 8,910 24,100 X
and investment transactions nstructions structions urnalize the entries to record the following selected bond investment transactions for Hall Trust (refer to the Chart of Accounts for exact wording of account titles): 9 urnal 10 Apr. 1 Purchased for cash $372,000 of Medina City 3% bonds at 100 plus accrued interest of $2,790, paying interest semiannually. Received first semiannual interest payment. Sold $139,200 of the bonds at 98 plus accrued interest of $348. June 30 July 31 Apr. 1 Chart of Accounts Journal Jun. 30 Jul. 31 Investments-Medina City Bonds *My Work 1 moro Interest Receivable Cash Cash Interest Receivable Interest Revenue Cash Loss on Sale of Investments Interest Receivable Investments-Medina City Bonds 372,000.00 2,790.00 5,580.00 133,980.00 5,568.00 I 374,290.00 2,790.00 2,790.00 ↑ ↑ ↓ ↑ ↓ Shaded cells have feedback ↑
Journalize the entries to record the following selected bond investment transactions for Dip, Inc. You MUST use the accounts outlined in the Chapter 15 narrated PowerPoint presentations – the accounts in your textbook aren’t descriptive enough. Journal entry descriptions are not required. *(Must include all supporting calculations) Date Transaction Description 4/1/2022 Purchased for cash, $50,000 of Bump, Inc. 9% bonds at 100 plus accrued interest. The bonds pay interest on January 31st and July 31st. 7/31/2022 Received the semiannual interest payment. 10/31/2022 Sold $20,000 of bonds at 104 plus accrued interest. 12/31/2022 Accrued interest. 12/31/2022 Marked the debt investments to a market value of $34,000. The debt investments are classified as available for sale investments. 12/31/2023 Market the debt investments to a market value of $31,000. The debt investments are classified as available for sale investments.
Prepare Krum Company's journal entries to record the following transactions involving its short-term investments in available-for-sale debt securities, all of which occurred during the current year. a. On August 1, paid $62,000 cash to purchase Houtte's 11%, six-month debt securities ($62,000 principal), dated August 1. b. On October 30, received a check from Houtte for 90 days' interest on the debt securities in transaction a. (Use 360 days in a year. Do not round your intermediate calculations.) View transaction list Journal entry worksheet 1 On August 1, paid $62,000 cash to purchase Houtte's 11% six-month debt securities ($62,000 principal), dated August 1. 2 Note: Enter debits before credits. Transaction a. Record entry General Journal Clear entry Debit Credit View general journal
Prepare journal entries to record the following transactions involving short-term debt investments.