Entries for Investments in Bonds, Interest, and Sale of BondsTorres Investments acquired $239,200 of Murphy Corp., 5% bonds at their face amount on October 1, Year 1. The bonds pay interest on October 1 and April 1. On April 1, Year 2, Torres sold $115,600 of Murphy Corp. bonds at 104. Entries for Investments in Bonds, Interest, and Sale of BondsTorres Investments acquired $239,200 of Murphy Corp., 5% bonds at their face amount on October 1, Year 1. The bonds pay interest on October 1 andApril 1. On April 1, Year 2, Torres sold $115,600 of Murphy Corp. bonds at 104.Journalize the entries to record the following:Do not round interim calculations. Round final answers to nearest dollar. For a compound transaction, if an amount box does not require an entry, leaveit blank.a. The initial acquisition of the Murphy Corp. bonds on October 1, Year 1.Year 1, Oct. 1 Investments-Murphy Corp. Bonds239,200 ✓FeedbackCashCheck My WorkInterest ReceivableInterest Revenue✓ ✓4b. The adjusting entry for three months of accrued interest earned on the Murphy Corp. bonds on December 31, Year 1.Year 1, Dec. 31✓✓4,485 X239,2003,588 X c. The receipt of semiannual interest on April 1, Year 2.Year 2, Apr. 1 CashFeedbackInterest ReceivableInterest RevenueCheck My Work115,600 Xd. The sale of $115,600 of Murphy Corp. bonds on April 1, Year 2, at 104.BEYear 2, Apr. 1 CashGain on Sale of InvestmentsInvestments-Murphy Corp. Bonds

Journal entries can be defined as a way to record business transactions in the accounting record. A…

Entries for Investments in Bonds, Interest, and Sale of Bonds Torres Investments acquired $239,200 of Murphy Corp., 5% bonds at their face amount on October 1, Year 1. The bonds pay interest on October 1 and April 1. On April 1, Year 2, Torres sold $115,600 of Murphy Corp. bonds at 104.

Entries for Investments in Bonds, Interest, and Sale of Bonds Torres Investments acquired $239,200 of Murphy Corp., 5% bonds at their face amount on October 1, Year 1. The bonds pay interest on October 1 and April 1. On April 1, Year 2, Torres sold $115,600 of Murphy Corp. bonds at 104.

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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