Gillooly Co. purchased $81,000 of 5%, 15-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 $30,000 of the Lumpkin County bonds at 102 plus $125 accrued interest less a $670 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. 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 - b. Semiannual interest on October 1. Year 1 Oct. 1 - Select - - Select - - Select - - Select - - Select - - Select - c. Sale of the bonds on October 31. Year 1 Oct. 31 - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - d. Adjusting entry for accrued interest on December 31, Year 1. Year 1 Dec. 31 - Select - - Select - - Select - - Select - 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 -

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 5E

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Gillooly Co. purchased $81,000 of 5%, 15-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 $30,000 of the Lumpkin County bonds at 102 plus $125 accrued interest less a $670 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.

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 -

b. Semiannual interest on October 1.

Year 1 Oct. 1	- Select -	- Select -
	- Select -	- Select -
	- Select -	- Select -

c. Sale of the bonds on October 31.

Year 1 Oct. 31	- Select -	- Select -
	- Select -	- Select -
	- Select -	- Select -
	- Select -	- Select -

d. Adjusting entry for accrued interest on December 31, Year 1.

Year 1 Dec. 31		- Select -	- Select -
		- Select -	- Select -

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 -

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