Apr. Purchased for cash $388,000 of Vasquez City 4% bonds at 100 plus accrued interest of $3,880. June 30 Received first semiannual interest payment. July 31 Sold $154,800 of the bonds at 96 plus accrued interest of $516. 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

Apr. Purchased for cash $388,000 of Vasquez City 4% bonds at 100 plus accrued interest of $3,880. June 30 Received first semiannual interest payment. July 31 Sold $154,800 of the bonds at 96 plus accrued interest of $516. 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

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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Entries for bond (held-to-maturity) investments The following bond investment transactions were completed by Starks Company: Jan. 31 Purchased 39, $1,000 government bonds at 100 plus accrued interest of $195 (1 month). The bonds pay 6% annual interest on July 1 and January 1. July 1 Received semiannual interest on bond investment. Aug. 30 Sold 15, $1,000 bonds at 97 plus $150 accrued interest (2 months). 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 Sale of Investments Interest Revenue InvestmentsInvestments-Government Bonds b. Journalize the December 31 adjusting entry for semiannual interest…
3 N is Prepare Garzon Company's journal entries to record the following transactions for the current year. January 1 Purchases 8.5% bonds (as a held-to-maturity investment) issued by PBS at a cost of $52,800, which is the par value. June 30 Receives first semiannual payment of interest from PBS bonds. December 31 Receives a check from PBS in payment of principal ($52,800) and the second semiannual payment of interest. View transaction list Journal entry worksheet 1 2 3 Purchases 8.5% bonds (as a held-to-maturity investment) issued by PBS at a cost of $52,800, which is the par value. Date January 01 Note: Enter debits before credits. General Journal *** Debit Credit
How do I journalize the bonds?
Bond investment transactionsJournalize the entries to record the following circled bond investmenttransactions for Starks Products: A. Purchased for cash $120,000 of Iceline.inc, 5% bonds at 100 plusaccrued interest of $1,000.B. Received first semiannual interest paymentC. Sold $60,000 of the bonds at 101 plus accrued interest of $505.
Journalize the entries to record the following selected bond investment transactions for Marr Products: If an amount box does not require an entry, leave it blank. Question Content Areaa. Purchased for cash $96,000 of Hotline Inc. 9% bonds at 100 plus accrued interest of $1,440. blank - Select -- Select - - Select -- Select - - Select -- Select -Question Content Areab. Received first semiannual interest payment. blank - Select -- Select - - Select -- Select - - Select -- Select -Question Content Areac. Sold $64,000 of the bonds at 103 plus accrued interest of $730. blank - Select -- Select - - Select -- Select - - Select -- Select - - Select -- Select -Question Content Aread. Received face value of remaining bonds at their maturity. blank - Select -- Select - - Select -- Select -
Journalize the entries to record the following selected bond investment transactions for Starks Products:a. Purchased for cash $120,000 of Iceline, Inc. 5% bonds at 100 plus accrued interest of $1,000.b. Received first semiannual interest payment.c. Sold $60,000 of the bonds at 101 plus accrued interest of $500.
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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.
Journalize 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): Apr. 1 Purchased for cash $388,000 of Medina City 4% bonds at 100 plus accrued interest of $3,880, paying interest semiannually. June 30 Received first semiannual interest payment. July 31 Sold $154,800 of the bonds at 96 plus accrued interest of $516.
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
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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.