Year 1 Stark Corporation., is a luxury brand cosmetics company that began operations in Jan1, 2009. The following transactions related to debt investments acquired by Stark Corporation, which has a fiscal year ending on December 31, 2009. February 1 - Purchased $100,000 of Chanel, 6% 15-year bonds at their face amount plus accrued interest of $500. The bonds pays interest on March 1 and September 1. May 1 – Purchased $210,000 of Dior 4% 10-year bonds at their face amount plus accrued interest of $700. The bonds pay interest on May 1 and Nov. 1. Nov.. 1- Received interest on the Chanel Bonds. Dec. 31 – Accrued $1,200 interest on the Dior Bonds Dec. 31 – Accrued $1,400 interest on the Chanel Bonds Year 2 March 1 – Received interest on the Chanel bonds. May 1 – Received interest on the Dior bonds. Journalize the entries to record these transactions
Year 1
Stark Corporation., is a luxury brand cosmetics company that began operations in Jan1, 2009. The following transactions related to debt investments acquired by Stark Corporation, which has a fiscal year ending on December 31, 2009.
February 1 - Purchased $100,000 of Chanel, 6% 15-year bonds at their face amount plus accrued interest of $500. The bonds pays interest on March 1 and September 1.
May 1 – Purchased $210,000 of Dior 4% 10-year bonds at their face amount plus accrued interest of $700. The bonds pay interest on May 1 and Nov. 1.
Nov.. 1- Received interest on the Chanel Bonds.
Dec. 31 – Accrued $1,200 interest on the Dior Bonds
Dec. 31 – Accrued $1,400 interest on the Chanel Bonds
Year 2
March 1 – Received interest on the Chanel bonds.
May 1 – Received interest on the Dior bonds.
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