Bond (held-to-maturity) investments Demopoulos Company acquired $145,200 of Marimar Co. 6% bonds on May 1 at their face amount as a held-to- maturity investment. Interest is paid semiannually on May 1 and November 1. On November 1, Demopoulos Company sold $59,400 of the bonds for 97. Journalize the entries to record the following: If an amount box does not require an entry, leave it blank. a. The initial acquisition of the bonds on May 1. May 1 Investments-Marimar Co. Bonds Cash b. The semiannual interest received on November 1. Nov. 1 Cash Interest Revenue 4,356 c. The sale of the bonds on November 1. Nov. 1 Cash Loss on Sale of Investments Investments-Marimar Co. Bonds 145,200 d. The accrual of interest on December 31. 4,356 57,618 1,782 145,200 59,400
Bond (held-to-maturity) investments Demopoulos Company acquired $145,200 of Marimar Co. 6% bonds on May 1 at their face amount as a held-to- maturity investment. Interest is paid semiannually on May 1 and November 1. On November 1, Demopoulos Company sold $59,400 of the bonds for 97. Journalize the entries to record the following: If an amount box does not require an entry, leave it blank. a. The initial acquisition of the bonds on May 1. May 1 Investments-Marimar Co. Bonds Cash b. The semiannual interest received on November 1. Nov. 1 Cash Interest Revenue 4,356 c. The sale of the bonds on November 1. Nov. 1 Cash Loss on Sale of Investments Investments-Marimar Co. Bonds 145,200 d. The accrual of interest on December 31. 4,356 57,618 1,782 145,200 59,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Bond (held-to-maturity) investments
Demopoulos Company acquired $145,200 of Marimar Co. 6% bonds on May 1 at their face amount as a held-to-
maturity investment. Interest is paid semiannually on May 1 and November 1. On November 1, Demopoulos
Company sold $59,400 of the bonds for 97.
Journalize the entries to record the following:
If an amount box does not require an entry, leave it blank.
a. The initial acquisition of the bonds on May 1.
May 1
vestments-Marimar Co. Bonds
Cash
b. The semiannual interest received on November 1.
Nov. 1 Cash
Interest Revenue
c. The sale of the bonds on November 1.
Nov. 1 Cash
4,356
Loss on Sale of Investments
Investments-Marimar Co. Bonds
d. The accrual of interest on December 31.
Dec. 31 Interest Receivable
Interest Revenue
145,200
4,356
57,618
1,782
145,200
59,400
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