Floyd Limited had the following transactions pertaining to debt investments. Jan. 1, 2020 Purchased 50 $1,000 Petal Co. 8% bonds for $50,000 cash. Interest is payable annually on January 1. Dec. 31, 2020 Accrued interest on the Petal Co. bonds. Jan. 1, 2021 Received interest on Petal Co. bonds. Jan. 1, 2021 Sold 30 Petal Co. bonds for $33,500. Instructions: a. Journalize the transactions. b. Prepare the adjusting entry for the accrual of interest at December 31, 2021.
Floyd Limited had the following transactions pertaining to debt investments. Jan. 1, 2020 Purchased 50 $1,000 Petal Co. 8% bonds for $50,000 cash. Interest is payable annually on January 1. Dec. 31, 2020 Accrued interest on the Petal Co. bonds. Jan. 1, 2021 Received interest on Petal Co. bonds. Jan. 1, 2021 Sold 30 Petal Co. bonds for $33,500. Instructions: a. Journalize the transactions. b. Prepare the adjusting entry for the accrual of interest at December 31, 2021.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...
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Question
Floyd Limited had the following transactions pertaining to debt investments.
Jan. 1, 2020
|
Purchased 50 $1,000 Petal Co. 8% bonds for $50,000 cash. Interest is payable annually on January 1. |
Dec. 31, 2020
|
Accrued interest on the Petal Co. bonds. |
Jan. 1, 2021
|
Received interest on Petal Co. bonds. |
Jan. 1, 2021
|
Sold 30 Petal Co. bonds for $33,500. |
Instructions:
a. Journalize the transactions.
b. Prepare the
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