The following information is available concerning Nunan Corporation’s sinking fund: 2019 Jan. 1 Established a sinking fund to retire an outstanding bond issue by contributing $425,000. Feb. 3 Purchased securities for $400,000. July 30 Sold securities originally costing $48,000 for $45,000. Dec. 31 Collected dividends and interest on the remaining securities in the amount of $49,000; the securities had a market value of $355,000 at this time. 2020 Dec. 31 Collected dividends and interest on the remaining securities in the amount of $40,000. 31 Paid sinking fund expenses of $4,500. 31 Sold the remaining securities in the fund for $360,000. 31 Retired an outstanding bond issue of $500,000 with the cash from the fund and transferred the remaining fund balance back to the Cash account. Required: Prepare journal entries to record the preceding transactions for Nunan.
The following information is available concerning Nunan Corporation’s sinking fund: 2019 Jan. 1 Established a sinking fund to retire an outstanding bond issue by contributing $425,000. Feb. 3 Purchased securities for $400,000. July 30 Sold securities originally costing $48,000 for $45,000. Dec. 31 Collected dividends and interest on the remaining securities in the amount of $49,000; the securities had a market value of $355,000 at this time. 2020 Dec. 31 Collected dividends and interest on the remaining securities in the amount of $40,000. 31 Paid sinking fund expenses of $4,500. 31 Sold the remaining securities in the fund for $360,000. 31 Retired an outstanding bond issue of $500,000 with the cash from the fund and transferred the remaining fund balance back to the Cash account. Required: Prepare journal entries to record the preceding transactions for Nunan.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 4RE: Refer to the information in RE 13-3. Assume that on December 31, 2019, Wolfpack received interest on...
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Question
The following information is available concerning Nunan Corporation’s sinking fund:
2019 | |
Jan. 1 | Established a sinking fund to retire an outstanding bond issue by contributing $425,000. |
Feb. 3 | Purchased securities for $400,000. |
July 30 | Sold securities originally costing $48,000 for $45,000. |
Dec. 31 | Collected dividends and interest on the remaining securities in the amount of $49,000; the securities had a market value of $355,000 at this time. |
2020 | |
Dec. 31 | Collected dividends and interest on the remaining securities in the amount of $40,000. |
31 | Paid sinking fund expenses of $4,500. |
31 | Sold the remaining securities in the fund for $360,000. |
31 | Retired an outstanding bond issue of $500,000 with the cash from the fund and transferred the remaining fund balance back to the Cash account. |
Required:
Prepare |
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