Prepare the journal entries to record the purchase of bonds, the interest receipts on April 30, 2019 and October 31, 2019 and the sale of bonds.

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Choose the items of income or expense that belong in the described areas of Form 1120, Schedule M-1 (Sections: Income subject to tax not recorded on books, Expenses recorded on books this year not deducted on this return, Income recorded on books this year not included on this return, and Deductions on this return not charged against book income.) Note the appropriate amount for the item selected under each section. If the amount decreases taxable income relative to book income, provide the amount as a negative number. If the amount increases taxable income relative to book income, provide the amount as a positive number. The following adjusted revenue and expense accounts appeared in the accounting records of Pashi, Inc., an accrual basis taxpayer, for the year ended December 31, Year 2. Revenues Net sales $3,000,000 Interest 18,000 Gains on sales of stock 5,000 Key-man life insurance proceeds 100,000 Subtotal $3,123,000 Costs and Expenses Cost of…

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Chapter 13, Problem 4E

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Prepare the journal entries to record the purchase of bonds, the interest receipts on April 30, 2019 and October 31, 2019 and the sale of bonds.

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Choose the items of income or expense that belong in the described areas of Form 1120, Schedule M-1 (Sections: Income subject to tax not recorded on books, Expenses recorded on books this year not deducted on this return, Income recorded on books this year not included on this return, and Deductions on this return not charged against book income.) Note the appropriate amount for the item selected under each section. If the amount decreases taxable income relative to book income, provide the amount as a negative number. If the amount increases taxable income relative to book income, provide the amount as a positive number. The following adjusted revenue and expense accounts appeared in the accounting records of Pashi, Inc., an accrual basis taxpayer, for the year ended December 31, Year 2. Revenues Net sales $3,000,000 Interest 18,000 Gains on sales of stock 5,000 Key-man life insurance proceeds 100,000 Subtotal $3,123,000 Costs and Expenses Cost of…

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