Bula Investments acquired $240,000 of Effenstein Corp., 8% bonds at their face amount on October 1, 20Y1. The bonds pay interest on October 1 and April 1. On April 1, 20Y2, Bula sold $90,000 of Effenstein Corp. bonds at 102. Journalize the entries to record the following selected transactions: Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Question Content Area a. The initial acquisition of the Effenstein Corp. bonds on October 1, 20Y1. 20Y1, Oct. 1 Investments-Effenstein Corp. Bonds Investments-Effenstein Corp. Bonds Cash Cash Question Content Area b. The adjusting entry for 3 months of accrued interest earned on the Effenstein Corp. bonds on December 31, 20Y1. 20Y1, Dec. 31 Interest Receivable Interest Receivable Interest Revenue Interest Revenue Question Content Area c. The receipt of semiannual interest on April 1, 20Y2. 20Y2, Apr. 1 Cash Cash Interest Receivable Interest Receivable Interest Revenue Interest Revenue Question Content Area d. The sale of $90,000 of Effenstein Corp. bonds on April 1, 20Y2, at 102. 20Y2, Apr. 1 Cash Cash Gain on Sale of Investments Gain on Sale of Investments Investments-Effenstein Corp. Bonds Investments-Effenstein Corp. Bonds Question Content Area e. The receipt of the face value of the remaining bonds at their maturity on October 1, 20Y8. 20Y8, Oct. 1 Cash Cash Investments-Effenstein Corp. Bonds Investments-Effenstein Corp. Bonds
Bula Investments acquired $240,000 of Effenstein Corp., 8% bonds at their face amount on October 1, 20Y1. The bonds pay interest on October 1 and April 1. On April 1, 20Y2, Bula sold $90,000 of Effenstein Corp. bonds at 102. Journalize the entries to record the following selected transactions: Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Question Content Area a. The initial acquisition of the Effenstein Corp. bonds on October 1, 20Y1. 20Y1, Oct. 1 Investments-Effenstein Corp. Bonds Investments-Effenstein Corp. Bonds Cash Cash Question Content Area b. The adjusting entry for 3 months of accrued interest earned on the Effenstein Corp. bonds on December 31, 20Y1. 20Y1, Dec. 31 Interest Receivable Interest Receivable Interest Revenue Interest Revenue Question Content Area c. The receipt of semiannual interest on April 1, 20Y2. 20Y2, Apr. 1 Cash Cash Interest Receivable Interest Receivable Interest Revenue Interest Revenue Question Content Area d. The sale of $90,000 of Effenstein Corp. bonds on April 1, 20Y2, at 102. 20Y2, Apr. 1 Cash Cash Gain on Sale of Investments Gain on Sale of Investments Investments-Effenstein Corp. Bonds Investments-Effenstein Corp. Bonds Question Content Area e. The receipt of the face value of the remaining bonds at their maturity on October 1, 20Y8. 20Y8, Oct. 1 Cash Cash Investments-Effenstein Corp. Bonds Investments-Effenstein Corp. Bonds
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Bula Investments acquired $240,000 of Effenstein Corp., 8% bonds at their face amount on October 1, 20Y1. The bonds pay interest on October 1 and April 1. On April 1, 20Y2, Bula sold $90,000 of Effenstein Corp. bonds at 102.
Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank.
Question Content Area
a. The initial acquisition of the Effenstein Corp. bonds on October 1, 20Y1.
| 20Y1, Oct. 1 |
|
Investments-Effenstein Corp. Bonds | Investments-Effenstein Corp. Bonds |
|
|
Cash | Cash |
Question Content Area
b. The
| 20Y1, Dec. 31 |
|
Interest Receivable | Interest Receivable |
|
|
Interest Revenue | Interest Revenue |
Question Content Area
c. The receipt of semiannual interest on April 1, 20Y2.
| 20Y2, Apr. 1 |
|
Cash | Cash |
|
|
Interest Receivable | Interest Receivable | |
|
|
Interest Revenue | Interest Revenue |
Question Content Area
d. The sale of $90,000 of Effenstein Corp. bonds on April 1, 20Y2, at 102.
| 20Y2, Apr. 1 |
|
Cash | Cash |
|
|
Gain on Sale of Investments | Gain on Sale of Investments | |
|
|
Investments-Effenstein Corp. Bonds | Investments-Effenstein Corp. Bonds |
Question Content Area
e. The receipt of the face value of the remaining bonds at their maturity on October 1, 20Y8.
| 20Y8, Oct. 1 |
|
Cash | Cash |
|
|
Investments-Effenstein Corp. Bonds | Investments-Effenstein Corp. Bonds |
Transcribed Image Text:Bula Investments acquired $240,000 of Effenstein Corp., 8% bonds at their face amount on October 1, 20Y1. The bonds pay interest on October 1 and April 1. On April
1, 20Y2, Bula sold $90,000 of Effenstein Corp. bonds at 102.
Journalize the entries to record the following selected transactions:
Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank.
a. The initial acquisition of the Effenstein Corp. bonds on October 1, 20Y1.
20Y1, Oct. 1 Investments-Effenstein Corp. Bonds
Cash
Interest Revenue ✓✓
b. The adjusting entry for 3 months of accrued interest earned on the Effenstein Corp. bonds on December 31, 20Y1.
20Y1, Dec. 31 Interest Receivable
✓
c. The receipt of semiannual interest on April 1, 20Y2.
20Y2, Apr. 1 Cash
Interest Receivable
Interest Revenue
✓
✓
✓
X
✓
X
✓
240,000 ✓
✓
✓
X
X
X
d. The sale of $90,000 of Effenstein Corp. bonds on April 1, 20Y2, at 102.
20Y2, Apr. 1 Cash
91,800
240,000
✓
Transcribed Image Text:b. The adjusting entry for 3 months of accrued interest earned on the Effenstein Corp. bonds on December 31, 20Y1.
8
20Y1, Dec. 31 Interest Receivable
Interest Revenue
c. The receipt of semiannual interest on April 1, 20Y2.
20Y2, Apr. 1 Cash
Interest Receivable
Interest Revenue
X
UG UC
X
X
Gain on Sale of Investments
Investments-Effenstein Corp. Bonds
X
d. The sale of $90,000 of Effenstein Corp. bonds on April 1, 20Y2, at 102.
20Y2, Apr. 1 Cash
Investments-Effenstein Corp. Bonds
91,800
1,800
90,000
e. The receipt of the face value of the remaining bonds at their maturity on October 1, 20Y8.
20Y8, Oct. 1 Cash
X
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