Problem 19-3 (IAA) Bullish Company had the following transactions in bond investment held as trading for the current year. Mar. 1 Purchased 2,000, P1,000, 12% bonds of Long Company at 93 excluding accrued interest. Interest is payable on February 1 and August 1. Apr. 1 ar Oct. 1 ANDIA Purchased 4,000, P1,000, 12% bonds of National Corporation at 95 plus accrued interest. Interest is payable March 1 and September 1. Sold 1,000 of the National bonds at 105 excluding accrued interest. Dec. 1 Sold all of the Long bonds at 100 plus accrued interest 31 The market value of the National bonds is 90. Required: % 000.000, bomb a. Prepare journal entries to record the transactions includin receipt and accrued of interest. b. Statement presentation of the bond investment o December 31. 308 I
Problem 19-3 (IAA) Bullish Company had the following transactions in bond investment held as trading for the current year. Mar. 1 Purchased 2,000, P1,000, 12% bonds of Long Company at 93 excluding accrued interest. Interest is payable on February 1 and August 1. Apr. 1 ar Oct. 1 ANDIA Purchased 4,000, P1,000, 12% bonds of National Corporation at 95 plus accrued interest. Interest is payable March 1 and September 1. Sold 1,000 of the National bonds at 105 excluding accrued interest. Dec. 1 Sold all of the Long bonds at 100 plus accrued interest 31 The market value of the National bonds is 90. Required: % 000.000, bomb a. Prepare journal entries to record the transactions includin receipt and accrued of interest. b. Statement presentation of the bond investment o December 31. 308 I
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Problem 19-3 (IAA) abA ANDIA
8
Bullish Company had the following transactions in bond
investment held as trading for the current year.
Mar. 1 Purchased 2,000, P1,000, 12% bonds of Long Company
at 93 excluding accrued interest. Interest is payable
on February 1 and August 1.
Apr. 1 Purchased 4,000, P1,000, 12% bonds of National
Corporation at 95 plus accrued interest. Interest is
payable March 1 and September 1.
Oct. 1 Sold 1,000 of the National bonds at 105 excluding
accrued interest.
Dec. 1 Sold all of the Long bonds at 100 plus accrued interest.
31 The market value of the National bonds is 90.
Required: 6
to 000,000
%o 000,000.3 boxpos
a. Prepare journal entries to record the transactions including
receipt and accrued of interest.
b. Statement presentation of the bond investment on
December 31. 50% i el no
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