The following bond investment transactions were completed during a recent year by Starks Company: Year 1 Jan. 31 Purchased 48, $1,000 government bonds at 100 plus accrued interest of $240 (one month). The bonds pay 6% annual interest on July 1 and January 1. July 1 Received semiannual interest on bond investment. Aug. 30 Sold 18, $1,000 bonds at 98 plus $180 accrued interest (two months). a. Journalize the entries for these transactions. Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Year 1, Jan. 31 fill in the blank 4f12d20a5028024_2 fill in the blank 4f12d20a5028024_3 fill in the blank 4f12d20a5028024_5 fill in the blank 4f12d20a5028024_6 fill in the blank 4f12d20a5028024_8 fill in the blank 4f12d20a5028024_9 Year 1, July 1 fill in the blank 4f12d20a5028024_11 fill in the blank 4f12d20a5028024_12 fill in the blank 4f12d20a5028024_14 fill in the blank 4f12d20a5028024_15 fill in the blank 4f12d20a5028024_17 fill in the blank 4f12d20a5028024_18 Year 1, Aug. 30 fill in the blank 4f12d20a5028024_20 fill in the blank 4f12d20a5028024_21 fill in the blank 4f12d20a5028024_23 fill in the blank 4f12d20a5028024_24 fill in the blank 4f12d20a5028024_26 fill in the blank 4f12d20a5028024_27 fill in the blank 4f12d20a5028024_29 fill in the blank 4f12d20a5028024_30 b. Provide the December 31, Year 1, adjusting journal entry for semiannual interest earned on the bonds. Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar. Year 1, Dec. 31 fill in the blank eac0c2fc0017fa0_2 fill in the blank eac0c2fc0017fa0_4
The following bond investment transactions were completed during a recent year by Starks Company: Year 1 Jan. 31 Purchased 48, $1,000 government bonds at 100 plus accrued interest of $240 (one month). The bonds pay 6% annual interest on July 1 and January 1. July 1 Received semiannual interest on bond investment. Aug. 30 Sold 18, $1,000 bonds at 98 plus $180 accrued interest (two months). a. Journalize the entries for these transactions. Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Year 1, Jan. 31 fill in the blank 4f12d20a5028024_2 fill in the blank 4f12d20a5028024_3 fill in the blank 4f12d20a5028024_5 fill in the blank 4f12d20a5028024_6 fill in the blank 4f12d20a5028024_8 fill in the blank 4f12d20a5028024_9 Year 1, July 1 fill in the blank 4f12d20a5028024_11 fill in the blank 4f12d20a5028024_12 fill in the blank 4f12d20a5028024_14 fill in the blank 4f12d20a5028024_15 fill in the blank 4f12d20a5028024_17 fill in the blank 4f12d20a5028024_18 Year 1, Aug. 30 fill in the blank 4f12d20a5028024_20 fill in the blank 4f12d20a5028024_21 fill in the blank 4f12d20a5028024_23 fill in the blank 4f12d20a5028024_24 fill in the blank 4f12d20a5028024_26 fill in the blank 4f12d20a5028024_27 fill in the blank 4f12d20a5028024_29 fill in the blank 4f12d20a5028024_30 b. Provide the December 31, Year 1, adjusting journal entry for semiannual interest earned on the bonds. Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar. Year 1, Dec. 31 fill in the blank eac0c2fc0017fa0_2 fill in the blank eac0c2fc0017fa0_4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Entries for Investment in Bonds, Interest, and Sale of Bonds
The following bond investment transactions were completed during a recent year by Starks Company:
Year 1 | |
Jan. 31 | Purchased 48, $1,000 government bonds at 100 plus accrued interest of $240 (one month). The bonds pay 6% annual interest on July 1 and January 1. |
July 1 | Received semiannual interest on bond investment. |
Aug. 30 | Sold 18, $1,000 bonds at 98 plus $180 accrued interest (two months). |
a. Journalize the entries for these transactions.
Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank.
Year 1, Jan. 31 | fill in the blank 4f12d20a5028024_2 | fill in the blank 4f12d20a5028024_3 | |
fill in the blank 4f12d20a5028024_5 | fill in the blank 4f12d20a5028024_6 | ||
fill in the blank 4f12d20a5028024_8 | fill in the blank 4f12d20a5028024_9 | ||
Year 1, July 1 | fill in the blank 4f12d20a5028024_11 | fill in the blank 4f12d20a5028024_12 | |
fill in the blank 4f12d20a5028024_14 | fill in the blank 4f12d20a5028024_15 | ||
fill in the blank 4f12d20a5028024_17 | fill in the blank 4f12d20a5028024_18 | ||
Year 1, Aug. 30 | fill in the blank 4f12d20a5028024_20 | fill in the blank 4f12d20a5028024_21 | |
fill in the blank 4f12d20a5028024_23 | fill in the blank 4f12d20a5028024_24 | ||
fill in the blank 4f12d20a5028024_26 | fill in the blank 4f12d20a5028024_27 | ||
fill in the blank 4f12d20a5028024_29 | fill in the blank 4f12d20a5028024_30 |
b. Provide the December 31, Year 1,
Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar.
Year 1, Dec. 31 | fill in the blank eac0c2fc0017fa0_2 | ||
fill in the blank eac0c2fc0017fa0_4 |
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