1a. Purchased for cash $200,000 of Jakob, Inc. 9% bonds at 100 plus accrued interest of $3,000.DATE DebitCreditX/X 33 points QUESTION 31b. Received first semiannual interest payment.DATE DebitCreditX/X 33 points QUESTION 41c. Sold $80,000 of the bonds at 101 plus accrued interest of $250.DATE DebitCreditX/X **Transaction Journal Entry for Bond Purchase****Transaction Description:**1a. Purchased for cash $200,000 of Jakob, Inc. 9% bonds at 100 plus accrued interest of $3,000.**Journal Entry Structure:**A table is provided to record the transaction details. The columns in the table are labeled "DATE", "Debit", and "Credit".**Table Details:**- **DATE Column:** - Placeholder "X/X" indicates the date of the transaction is yet to be specified.- **Debit and Credit Columns:** - Both columns have four empty spaces each, which need to be filled with the corresponding debit and credit accounts and amounts related to this bond purchase transaction.**Notes:**- Ensure to record the correct accounts based on the nature of this transaction, generally involving "Investment in Bonds" and "Cash", with consideration for the interest accrued.- The entry will reflect the cash outflow and the asset acquisition in your financial statements. Certainly! Here is a transcription suitable for an educational website:---**Financial Accounting Exercise****Question 3****1b. Received first semiannual interest payment.**| DATE | Debit | Credit ||------|-------|--------|| X/X | | || | | || | | || | | |**Explanation:**This section is designed to record the transaction of receiving the first semiannual interest payment. The table includes spaces to input the transaction date and the corresponding debit and credit entries. Students should fill in the appropriate accounts and amounts based on the given context.---**Question 4****1c. Sold $80,000 of the bonds at 101 plus accrued interest of $250.**| DATE | Debit | Credit ||------|-------|--------|| X/X | | || | | || | | || | | |**Explanation:**Here, the transaction involves selling $80,000 worth of bonds at a price of 101, along with an additional accrued interest of $250. Students are expected to fill in the date of the transaction and the associated debit and credit entries, ensuring accurate reflection of this financial activity.---These exercises help students practice the fundamentals of journal entry recording, emphasizing understanding of debits and credits within the context of financial transactions.

1. When bonds are purchased, then it may happen that bonds purchase date and interest due date are different. Then the sellers also takes interest from the buyer interest of the period till bonds were with him. Here, in the first entry accrued interest is the same thing which we are talking about. 2. Interest for 1st semi annual = face value of bonds * rate * time/100 200,000 * 9 * 1 ---------------------------- = 9,000 100 * 2 Interest paid to vendor = 3,000 So, 9,000 - 3,000 = 6,000 will be the Income for buyer. 3. Cost of bonds sold = $ 80,000 Selling Price = at $ 101 means 80,000 *101/100 = 80,800 Accrued interest = $ 250

Answered: Purchased for cash $200,000 of Jakob,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

QUESTION 3

1b. Received first semiannual interest payment.

DATE

Debit

Credit

X/X

33 points

QUESTION 4

1c. Sold $80,000 of the bonds at 101 plus accrued interest of $250.

DATE

Debit

Credit

X/X

**Transaction Journal Entry for Bond Purchase**

**Transaction Description:**

1a. Purchased for cash $200,000 of Jakob, Inc. 9% bonds at 100 plus accrued interest of $3,000.

**Journal Entry Structure:**

A table is provided to record the transaction details. The columns in the table are labeled "DATE", "Debit", and "Credit".

**Table Details:**

- **DATE Column:**
- Placeholder "X/X" indicates the date of the transaction is yet to be specified.

- **Debit and Credit Columns:**
- Both columns have four empty spaces each, which need to be filled with the corresponding debit and credit accounts and amounts related to this bond purchase transaction.

**Notes:**
- Ensure to record the correct accounts based on the nature of this transaction, generally involving "Investment in Bonds" and "Cash", with consideration for the interest accrued.
- The entry will reflect the cash outflow and the asset acquisition in your financial statements.

Certainly! Here is a transcription suitable for an educational website:

---

**Financial Accounting Exercise**

**Question 3**

**1b. Received first semiannual interest payment.**

| DATE | Debit | Credit |
|------|-------|--------|
| X/X | | |
| | | |
| | | |
| | | |

**Explanation:**

This section is designed to record the transaction of receiving the first semiannual interest payment. The table includes spaces to input the transaction date and the corresponding debit and credit entries. Students should fill in the appropriate accounts and amounts based on the given context.

---

**Question 4**

**1c. Sold $80,000 of the bonds at 101 plus accrued interest of $250.**

| DATE | Debit | Credit |
|------|-------|--------|
| X/X | | |
| | | |
| | | |
| | | |

**Explanation:**

Here, the transaction involves selling $80,000 worth of bonds at a price of 101, along with an additional accrued interest of $250. Students are expected to fill in the date of the transaction and the associated debit and credit entries, ensuring accurate reflection of this financial activity.

---

These exercises help students practice the fundamentals of journal entry recording, emphasizing understanding of debits and credits within the context of financial transactions.

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