Prepare Krum Company's journal entries to record the following transactions involving its short-term investments in available-for-sale debt securities, all of which occurred during the current year. a. On August 1, paid $64,000 cash to purchase Houtte's 10%, six-month debt securities ($64,000 principal), dated August 1. b. On October 30, received a check from Houtte for 90 days' interest on the debt securities in transaction a. Note: Use 360 days in a year. Do not round your intermediate calculations. 1 No Transaction a. > Answer is not complete. General Journal Debt investments - Available-for-sale Cash Cash Interest revenue Debit Credit 64,000 64,000 1,600 × 1,600 x
Prepare Krum Company's journal entries to record the following transactions involving its short-term investments in available-for-sale debt securities, all of which occurred during the current year. a. On August 1, paid $64,000 cash to purchase Houtte's 10%, six-month debt securities ($64,000 principal), dated August 1. b. On October 30, received a check from Houtte for 90 days' interest on the debt securities in transaction a. Note: Use 360 days in a year. Do not round your intermediate calculations. 1 No Transaction a. > Answer is not complete. General Journal Debt investments - Available-for-sale Cash Cash Interest revenue Debit Credit 64,000 64,000 1,600 × 1,600 x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer must be in table format or i will give down vote
Transcribed Image Text:Prepare Krum Company's journal entries to record the following transactions involving its short-term investments in available-for-sale
debt securities, all of which occurred during the current year.
a. On August 1, paid $64,000 cash to purchase Houtte's 10%, six-month debt securities ($64,000 principal), dated August 1.
b. On October 30, received a check from Houtte for 90 days' interest on the debt securities in transaction a.
Note: Use 360 days in a year. Do not round your intermediate calculations.
1
No
Transaction
a.
> Answer is not complete.
General Journal
Debt investments - Available-for-sale
Cash
Cash
Interest revenue
Debit
Credit
64,000
64,000
1,600 ×
1,600 x
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