Gillooly Co. purchased $360,000 of 6%, 20-year Lumpkin 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, Gillooly Co. sold $90,000 of the Lumpkin County bonds at 98 plus $450 accrued interest less a $200 brokerage commission. Journalize the entries to record the following: Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Assume a 360-day year. Question Content Area a. The purchase of the bonds on May 11 plus 40 days of accrued interest. Year 1 May 11 - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area b. Semiannual interest on October 1. Year 1 Oct. 1 - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area c. Sale of the bonds on October 31. Year 1 Oct. 31 - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area d. Adjusting entry for accrued interest on December 31, Year 1. Year 1 Dec. 31 - Select - - Select - - Select - - Select - Question Content Area e. The receipt of the face value of the remaining bonds at their maturity on April 1, Year 20. Year 20 Apr. 1 - Select - - Select - - Select - - Select -
Gillooly Co. purchased $360,000 of 6%, 20-year Lumpkin 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, Gillooly Co. sold $90,000 of the Lumpkin County bonds at 98 plus $450 accrued interest less a $200 brokerage commission. Journalize the entries to record the following: Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Assume a 360-day year. Question Content Area a. The purchase of the bonds on May 11 plus 40 days of accrued interest. Year 1 May 11 - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area b. Semiannual interest on October 1. Year 1 Oct. 1 - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area c. Sale of the bonds on October 31. Year 1 Oct. 31 - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area d. Adjusting entry for accrued interest on December 31, Year 1. Year 1 Dec. 31 - Select - - Select - - Select - - Select - Question Content Area e. The receipt of the face value of the remaining bonds at their maturity on April 1, Year 20. Year 20 Apr. 1 - Select - - Select - - Select - - Select -
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Gillooly Co. purchased $360,000 of 6%, 20-year Lumpkin 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, Gillooly Co. sold $90,000 of the Lumpkin County bonds at 98 plus $450 accrued interest less a $200 brokerage commission.
Question Content Area
a. The purchase of the bonds on May 11 plus 40 days of accrued interest.
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Question Content Area
b. Semiannual interest on October 1.
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Question Content Area
c. Sale of the bonds on October 31.
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Question Content Area
d.
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Question Content Area
e. The receipt of the face value of the remaining bonds at their maturity on April 1, Year 20.
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