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Gonzalez Company acquired $157,200 of Walker Co., 5% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Gonzalez Company sold $46,200 of the bonds for 95. Journalize entries to record the following in Year 1: For a compound transaction, if an amount box does not require an entry, leave it blank. a.  The initial acquisition of the bonds on May 1. May 1               b.  The semiannual interest received on November 1. Nov. 1               c.  The sale of the bonds on November 1. Nov. 1                       d.  The accrual of $925 interest on December 31. Dec. 31

Gonzalez Company acquired $157,200 of Walker Co., 5% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Gonzalez Company sold $46,200 of the bonds for 95. Journalize entries to record the following in Year 1: For a compound transaction, if an amount box does not require an entry, leave it blank. a.  The initial acquisition of the bonds on May 1. May 1               b.  The semiannual interest received on November 1. Nov. 1               c.  The sale of the bonds on November 1. Nov. 1                       d.  The accrual of $925 interest on December 31. Dec. 31

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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  1. Entries for Investment in Bonds, Interest, and Sale of Bonds

    Gonzalez Company acquired $157,200 of Walker Co., 5% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Gonzalez Company sold $46,200 of the bonds for 95.

    Journalize entries to record the following in Year 1:

    For a compound transaction, if an amount box does not require an entry, leave it blank.

    a.  The initial acquisition of the bonds on May 1.

    May 1      
           

    b.  The semiannual interest received on November 1.

    Nov. 1      
           

    c.  The sale of the bonds on November 1.

    Nov. 1      
           
           

    d.  The accrual of $925 interest on December 31.

    Dec. 31      
           
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