Prepare Garzon Company's journal entries to record the following transactions for the current year. Jan. 1 Purchases 9% bonds (as a held-to-maturity investment) issued by PBS at a cost of $44,000, which is the par value. July 1 Receives first semiannual payment of interest from PBS bonds. Dec. 31 Receives a check from PBS in payment of principal ($44,000) and the second semiannual payment of interest.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Prepare Garzon Company's
| Jan. | 1 | Purchases 9% bonds (as a held-to-maturity investment) issued by PBS at a cost of $44,000, which is the par value. | ||
| July | 1 | Receives first semiannual payment of interest from PBS bonds. | ||
| Dec. | 31 | Receives a check from PBS in payment of principal ($44,000) and the second semiannual payment of interest. |
Purchases 9% bonds (as a held-to-maturity investment) issued by PBS at a cost of $44,000, which is the par value.
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Receives first semiannual payment of interest from PBS bonds.
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Receives a check from PBS in payment of principal ($44,000) and the second semiannual payment of interest.
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