Entries for Investment in Bonds, Interest, and Sale of Bonds Bocelli Co. purchased $30,000 of 6%, 12-year Sanz 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, Bocelli Co. sold $12,000 of the Sanz County bonds at 101 plus $60 accrued interest less a $135 brokerage commission. Do not round interim calculations. Round final answers to nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Assume a 360-day year. a. Provide the journal entry for the purchase of the bonds on May 11 plus 72 days of accrued interest. Year 1 May 11 b. Provide the journal entry for the semiannual interest on October 1. Year 1 Oct. 1 c. Provide the journal entry for the sale of the bonds on October 31. Year 1 Oct. 31

Entries for Investment in Bonds, Interest, and Sale of Bonds Bocelli Co. purchased $30,000 of 6%, 12-year Sanz 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, Bocelli Co. sold $12,000 of the Sanz County bonds at 101 plus $60 accrued interest less a $135 brokerage commission. Do not round interim calculations. Round final answers to nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Assume a 360-day year. a. Provide the journal entry for the purchase of the bonds on May 11 plus 72 days of accrued interest. Year 1 May 11 b. Provide the journal entry for the semiannual interest on October 1. Year 1 Oct. 1 c. Provide the journal entry for the sale of the bonds on October 31. Year 1 Oct. 31

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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