Instructions Gillooly Co. purchased $162,000 of 4%, 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 $30,000 of the Lumpkin County bonds at 99 plus $100 accrued interest less a $110 brokerage commission. Required: Journalize the entries to record the following: a. The purchase of the bonds on May 11 plus 40 days of accrued interest." b. Semiannual interest on October 1." c. Sale of the bonds on October 31. d. Adjusting entry for accrued interest on December 31, Year 1." e. The receipt of the face value of the remaining bonds at their maturity on April 1, Year 20." *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Assume a 360-day year. Do not round your intermediate calculations and round final answers to the nearest dollar.

Instructions Gillooly Co. purchased $162,000 of 4%, 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 $30,000 of the Lumpkin County bonds at 99 plus $100 accrued interest less a $110 brokerage commission. Required: Journalize the entries to record the following: a. The purchase of the bonds on May 11 plus 40 days of accrued interest." b. Semiannual interest on October 1." c. Sale of the bonds on October 31. d. Adjusting entry for accrued interest on December 31, Year 1." e. The receipt of the face value of the remaining bonds at their maturity on April 1, Year 20." *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Assume a 360-day year. Do not round your intermediate calculations and round final answers to the nearest dollar.

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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