The Old Country Company purchased the following instruments during the year. Assume the company's fiscal year end is January 31, 2026 Dec 1, 2025 Feb 1, 2026 Purchased a $5,000 120-day treasury bill for $ 4,935. The treasury bills are trading at a market rate of interest of 4% annually. Purchased at 101 a $ 15,000, 5 % 5-year Laurentian Bank of Canada bond. Interest is paid semi-annually. The market rate of interest was 3.5%. The bonds were purchased to trade Treasury bill matured 4 Received interest on the Laurentian Bank of Canada bond. Sold the Laurentian Bank of Canada bond at 99. Mar 30, 2026 Aug 1, 2026 Aug 2, 2026 Required: Record the above transactions, and any necessary adjusting entries for The Old Country Company required at January 31, 2026.
The Old Country Company purchased the following instruments during the year. Assume the company's fiscal year end is January 31, 2026 Dec 1, 2025 Feb 1, 2026 Purchased a $5,000 120-day treasury bill for $ 4,935. The treasury bills are trading at a market rate of interest of 4% annually. Purchased at 101 a $ 15,000, 5 % 5-year Laurentian Bank of Canada bond. Interest is paid semi-annually. The market rate of interest was 3.5%. The bonds were purchased to trade Treasury bill matured 4 Received interest on the Laurentian Bank of Canada bond. Sold the Laurentian Bank of Canada bond at 99. Mar 30, 2026 Aug 1, 2026 Aug 2, 2026 Required: Record the above transactions, and any necessary adjusting entries for The Old Country Company required at January 31, 2026.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Old Country Company purchased the following instruments during the year. Assume the
company's fiscal year end is January 31, 2026
Dec 1, 2025
Feb 1, 2026
Purchased a $5,000 120-day treasury bill for $4,935. The treasury bills are
trading at a market rate of interest of 4% annually.
Purchased at 101 a $ 15,000, 5 % 5-year Laurentian Bank of Canada bond.
Interest is paid semi-annually. The market rate of interest was 3.5%. The
bonds were purchased to trade
Treasury bill matured.
Received interest on the Laurentian Bank of Canada bond.
Sold the Laurentian Bank of Canada bond at 99.
Mar 30, 2026
Aug 1, 2026
Aug 2, 2026
Required:
Record the above transactions, and any necessary adjusting entries for The Old Country
Company required at January 31, 2026.
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