Entries for Investment in Bonds, Interest, and Sale of Bonds Parilo Company acquired $204,000 of Makofske Company, 6% bonds on May 1, 20Y5, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 20Y5, Parilo sold $44,400 of the bonds for 96.
Entries for Investment in Bonds, Interest, and Sale of Bonds Parilo Company acquired $204,000 of Makofske Company, 6% bonds on May 1, 20Y5, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 20Y5, Parilo sold $44,400 of the bonds for 96.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Entries for Investment in Bonds, Interest, and Sale of Bonds
Parilo Company acquired $204,000 of Makofske Company, 6% bonds on May 1, 20Y5, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 20Y5, Parilo sold $44,400 of the bonds for 96.
If an amount box does not require an entry, leave it blank.
Questions are attached with image
Needing answers for questions:
B
C
D
Transcribed Image Text:b. The semiannual interest received on November 1.
20Y5 Nov. 1 Cash v
6,120 x
Interest Revenue v
6,120 x
c. The sale of the bonds on November 1.
20Y5 Nov. 1 Cash v
55,872 x
Loss on Sale of Investments v
1,728 x
Investments-Makofske Co. Bonds
57,600 x
d. The accrual of $1,596 interest on December 31, 20Y5.
20Y5 Dec. 31 Interest Receivable v
Interest Revenue
1,708 x
1,708 x
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