Entries for bond (held-to-maturity) investments Gillooly Co. purchased $81,000 of 8%, 12-year Lumpkin County bonds on May 11, Year 1, directly from the.county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, Year 1, Gillooly Co. sold $30,000 of the Lumpkin County bonds at 101 plus $200 accrued interest less a $340 brokerage commission. Journalize the entries to record the following: Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Assume a 360-day year. a. The purchase of the bonds on May 11 plus 40 days of accrued interest. Year 1 May 11 Interest Payable Interest Receivable Cash b. Semiannual interest on October 1. Year 1 Oct. 1 Cash Interest Receivable Interest Revenue image008.png c. Sale of the bonds on October 31. Year 1 Oct. 31 Cash Loss on Sale of Investments Interest Revenue
Entries for bond (held-to-maturity) investments Gillooly Co. purchased $81,000 of 8%, 12-year Lumpkin County bonds on May 11, Year 1, directly from the.county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, Year 1, Gillooly Co. sold $30,000 of the Lumpkin County bonds at 101 plus $200 accrued interest less a $340 brokerage commission. Journalize the entries to record the following: Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Assume a 360-day year. a. The purchase of the bonds on May 11 plus 40 days of accrued interest. Year 1 May 11 Interest Payable Interest Receivable Cash b. Semiannual interest on October 1. Year 1 Oct. 1 Cash Interest Receivable Interest Revenue image008.png c. Sale of the bonds on October 31. Year 1 Oct. 31 Cash Loss on Sale of Investments Interest Revenue
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Entries for bond (held-to-maturity) investments
Gillooly Co. purchased $81,000 of 8%, 12-year Lumpkin County bonds on May 11, Year 1, directly from the.county, at their face amount plus accrued
interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, Year 1, Gillooly Co. sold $30,000 of the Lumpkin County bonds at
101 plus $200 accrued interest less a $340 brokerage commission.
Journalize the entries to record the following: Do not round interim calculations. Round final answers to nearest dollar. If an amount box does
not require an entry, leave it blank. Assume a 360-day year.
a. The purchase of the bonds on May 11 plus 40 days of accrued interest.
Year 1 May 11 Interest Payable
Interest Receivable
Cash
b. Semiannual interest on October 1.
Year 1 Oct. 1 Cash
Interest Receivable
Interest Revenue
image008.png
C. Sale of the bonds on October 31.
Year 1 Oct. 31 Cash
Loss on Sale of Investments
Interest Revenue
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