Selected debt investment transactions for Easy A Inc., a retail business, are listed below. Easy A Inc. has a fiscal year ending on December 31. Year 1: Feb. 1 Bought $35,000 of 6%, XYZ Co. 12-year bonds at their face amount plus accrued interest of $700. The bonds pay interest semiannually on June 1 and December 1. May 1 Bought $200,000 of Simple Tree 5%, 20-year bonds at their face amount plus accrued interest of $2,500. The bonds pay interest semiannually on March 1 and September 1. Jun. 1 Received semiannual interest on the XYZ Co. bonds. Sept. 1 Received semiannual interest on the Simple Tree bonds. Oct. 1 Sold $15,000 of Simple Tree bonds at 102% plus accrued interest of $63. Dec. 1 Received semiannual interest on the XYZ Co. bonds. Dec. 31 Accrued $3,135 interest on the Simple Tree bonds. Accrued $175 interest on the XYZ Co. bonds. Year 2: Mar. 1 Received semiannual interest on the Simple Tree bonds. Jun. 1 Received semiannual interest on the XYZ Co. bonds. Sept. 1 Received semiannual interest on the Simple Tree bonds. Instructions: Journalize the selected transactions for Easy A Inc.
Selected debt investment transactions for Easy A Inc., a retail business, are listed below. Easy A Inc. has a fiscal year ending on December 31. Year 1: Feb. 1 Bought $35,000 of 6%, XYZ Co. 12-year bonds at their face amount plus accrued interest of $700. The bonds pay interest semiannually on June 1 and December 1. May 1 Bought $200,000 of Simple Tree 5%, 20-year bonds at their face amount plus accrued interest of $2,500. The bonds pay interest semiannually on March 1 and September 1. Jun. 1 Received semiannual interest on the XYZ Co. bonds. Sept. 1 Received semiannual interest on the Simple Tree bonds. Oct. 1 Sold $15,000 of Simple Tree bonds at 102% plus accrued interest of $63. Dec. 1 Received semiannual interest on the XYZ Co. bonds. Dec. 31 Accrued $3,135 interest on the Simple Tree bonds. Accrued $175 interest on the XYZ Co. bonds. Year 2: Mar. 1 Received semiannual interest on the Simple Tree bonds. Jun. 1 Received semiannual interest on the XYZ Co. bonds. Sept. 1 Received semiannual interest on the Simple Tree bonds. Instructions: Journalize the selected transactions for Easy A Inc.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Selected debt investment transactions for Easy A Inc., a retail business, are listed below.
Easy A Inc. has a fiscal year ending on December 31.
Year 1:
Feb. 1
Bought $35,000 of 6%, XYZ Co. 12-year bonds at their face amount plus accrued interest of
$700. The bonds pay interest semiannually on June 1 and December 1.
May 1
Bought $200,000 of Simple Tree 5%, 20-year bonds at their face amount plus accrued interest of
$2,500. The bonds pay interest semiannually on March 1 and September 1.
Jun. 1
Received semiannual interest on the XYZ Co. bonds.
Sept. 1
Received semiannual interest on the Simple Tree bonds.
Oct. 1
Sold $15,000 of Simple Tree bonds at 102% plus accrued interest of $63.
Dec. 1
Received semiannual interest on the XYZ Co. bonds.
Dec. 31
Accrued $3,135 interest on the Simple Tree bonds.
Accrued $175 interest on the XYZ Co. bonds.
Year 2:
Mar. 1
Received semiannual interest on the Simple Tree bonds.
Jun. 1
Received semiannual interest on the XYZ Co. bonds.
Sept. 1 Received semiannual interest on the Simple Tree bonds.
Instructions:
Journalize the selected transactions for Easy A Inc.
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