May I and November 1. On November 1, Demopoulos Company sola sJournalize 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 1b. The semiannual interest received on November 1.Nov. 1c. The sale of the bonds on November 1.Nov. 1000d. The accrual of $1,855 interest on December 31.Dec. 31 Entries for bond (held-to-maturity) investmentsDemopoulos Company acquired $203,400 of Marimar Co., 7% bonds on May 1 at their face amount. Interest is paid semiannually onMay 1 and November 1. On November 1, Demopoulos Company sold $44,400 of the bonds for 99.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 1b. The sNov. 1CashNov. 1Interest ReceivableInterest RevenueInvestments-Marimar Co. Bondsc. The sNotes Receivablelovember 1.d. The accrual of $1,855 interest on December 31.

Answer : Investment amount = $203,400 Interest rate = 7%

Answered: box does not require acquisition of the…

Business

Accounting

box does not require acquisition of the bor

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 2E

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Question

May I and November 1. On November 1, Demopoulos Company sola s
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
b. The semiannual interest received on November 1.
Nov. 1
c. The sale of the bonds on November 1.
Nov. 1
000
d. The accrual of $1,855 interest on December 31.
Dec. 31

Entries for bond (held-to-maturity) investments
Demopoulos Company acquired $203,400 of Marimar Co., 7% bonds on May 1 at their face amount. Interest is paid semiannually on
May 1 and November 1. On November 1, Demopoulos Company sold $44,400 of the bonds for 99.
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
b. The s
Nov. 1
Cash
Nov. 1
Interest Receivable
Interest Revenue
Investments-Marimar Co. Bonds
c. The sNotes Receivable
lovember 1.
d. The accrual of $1,855 interest on December 31.

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