The following information is available concerning Nunan Corporation’s sinking fund:2019 Jan. 1Established a sinking fund to retire an outstanding bond issue by contributing $425,000.Feb. 3Purchased securities for $400,000.July 30Sold securities originally costing $48,000 for $45,000.Dec. 31Collected 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. 31Collected dividends and interest on the remaining securities in the amount of $40,000.31Paid sinking fund expenses of $4,500.31Sold the remaining securities in the fund for $360,000.31Retired 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.

INTRODUCTION: A journal entry is often made in the general ledger, but it can alternatively be…

Answered: The following information is available…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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.