Foren Corporation had the following transactions pertaining to debt investments. Jan 1: Purchased 50 8%, $1,000 Choate Co. bonds for $50,000 cash plus brokerage fees of $900. Interest is payable semiannually on July 1 and January 1. July 1: Received semiannual interest on Choate Co. bonds. July 1: Sold 30 Choate Co. bonds for $34,000 less $500 brokerage fees. a. Journalize the transactions. b. Prepare the adjusting entry for the accrual of interest at December 31.
Foren Corporation had the following transactions pertaining to debt investments. Jan 1: Purchased 50 8%, $1,000 Choate Co. bonds for $50,000 cash plus brokerage fees of $900. Interest is payable semiannually on July 1 and January 1. July 1: Received semiannual interest on Choate Co. bonds. July 1: Sold 30 Choate Co. bonds for $34,000 less $500 brokerage fees. a. Journalize the transactions. b. Prepare the adjusting entry for the accrual of interest at December 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Foren Corporation had the following transactions pertaining to debt investments.
Jan 1: Purchased 50 8%, $1,000 Choate Co. bonds for $50,000 cash plus brokerage fees of $900. Interest is payable semiannually on
July 1 and January 1.
July 1: Received semiannual interest on Choate Co. bonds.
July 1: Sold 30 Choate Co. bonds for $34,000 less $500 brokerage fees.
a. Journalize the transactions.
b. Prepare the adjusting entry for the accrual of interest at December 31.
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