Below are selected transactions for Ink Corporation. Ink Corporation began operations on January 1, 2021 and has a fiscal year end of December 31*. Prepare journal entries for each transaction. MUST SHOW ALL YOUR WORK! IF NECESSARY, ROUND AMOUNTS TO NEAREST DOLLAR. Date Transaction Description 08/01/2021 Purchased for cash $95,000 of Zarpo, Inc. 12% bonds at 100 plus accrued interest. The bonds pay interest on August 31" and February 28th. 8/31/2021 Received the semiannual interest payment. 11/30/2021 Sold $45,000 of the bonds at 98 plus accrued interest.

Below are selected transactions for Ink Corporation. Ink Corporation began operations on January 1, 2021 and has a fiscal year end of December 31*. Prepare journal entries for each transaction. MUST SHOW ALL YOUR WORK! IF NECESSARY, ROUND AMOUNTS TO NEAREST DOLLAR. Date Transaction Description 08/01/2021 Purchased for cash $95,000 of Zarpo, Inc. 12% bonds at 100 plus accrued interest. The bonds pay interest on August 31" and February 28th. 8/31/2021 Received the semiannual interest payment. 11/30/2021 Sold $45,000 of the bonds at 98 plus accrued interest.

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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The following section is taken from Bramble Corp.’s balance sheet at December 31, 2021. Current Liabilities Interest Payable $ 89,500 Long-term Liabilities Bonds payable, 5%, due January 1, 2024 1,790,000 Bond interest is payable annually on January 1. The bonds are callable on any interest date. a) Journalize the payment of the bond interest on January 1, 2022. b) Assume that on January 1, 2022, after paying interest, Bramble calls bonds having a face value of $602,000. The call price is 105. Record the redemption of the bonds. c) Prepare the entry to record the accrual of interest on December 31, 2022.
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