Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $37,282 on January 1. The market interest rate for bonds of similar risk and maturity is 8%. Salt Foods receives interest semiannually on June 30 and December 31. 1. & 2. Record the necessary entries regarding the bonds.
Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $37,282 on January 1. The market interest rate for bonds of similar risk and maturity is 8%. Salt Foods receives interest semiannually on June 30 and December 31. 1. & 2. Record the necessary entries regarding the bonds.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 33CE
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Question
Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $37,282 on January 1. The market interest rate for bonds of similar risk and maturity is 8%. Salt Foods receives interest semiannually on June 30 and December 31.
1. & 2. Record the necessary entries regarding the bonds.
![Journal entry worksheet
1
>
Record the investment in bonds.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
January 01
Record entry
Clear entry
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F60fbc53f-6029-4747-a5ba-2ee1ef433063%2F8eaa95bc-3f78-424d-a258-471188ff2d6b%2Foluotu_processed.png&w=3840&q=75)
Transcribed Image Text:Journal entry worksheet
1
>
Record the investment in bonds.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
January 01
Record entry
Clear entry
View general journal
![Journal entry worksheet
1
Record the receipt of the first interest payment.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
June 30
Record entry
Clear entry
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F60fbc53f-6029-4747-a5ba-2ee1ef433063%2F8eaa95bc-3f78-424d-a258-471188ff2d6b%2Fl1m6o3p_processed.png&w=3840&q=75)
Transcribed Image Text:Journal entry worksheet
1
Record the receipt of the first interest payment.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
June 30
Record entry
Clear entry
View general journal
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