Prepare Natura Company’s journal entries to record the following transactions involving its short-term investments in held-to-maturity debt securities, all of which occurred during the current year.On June 15, paid $254,000 cash to purchase Remed’s 90-day short-term debt securities ($254,000 principal), dated June 15, that pay 9% interest.On September 16, received a check from Remed in payment of the principal and 90 days' interest on the debt securities purchased in transaction a.Note: Use 360 days in a year. Do not round your intermediate calculations.

Journal entry is an account of a business transaction preserved in your books. Every transaction…

Answered: Prepare Natura Company’s journal…

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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Prepare Natura Company’s journal entries to record the following transactions involving its short-term investments in held-to-maturity debt securities, all of which occurred during the current year.

On June 15, paid $254,000 cash to purchase Remed’s 90-day short-term debt securities ($254,000 principal), dated June 15, that pay 9% interest.
On September 16, received a check from Remed in payment of the principal and 90 days' interest on the debt securities purchased in transaction a.

Note: Use 360 days in a year. Do not round your intermediate calculations.

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