Journalize the bond investment transactions in the books of Company G.

Question

On August 1, Year 1, Bee Company purchased $1,500,000 of Ant Company 10-year, 6% bonds, dated July 1, at 100 plus accrued interest. On March 1, Year 2, Bee sold half of the bonds for $782,500 plus accrued interest. Journalize the following transactions: a. Purchase of bonds on August 1, Year 1. b. Receipt of first semiannual interest payment on December 31, Year 1. c. The sale of the bonds on March 1, Year 2. If an amount box does not require an entry, leave it blank.

Answer 1

Question

Chapter 15, Problem 1E

To determine

Journalize the bond investment transactions in the books of Company G.

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On August 1, Year 1, Bee Company purchased $1,500,000 of Ant Company 10-year, 6% bonds, dated July 1, at 100 plus accrued interest. On March 1, Year 2, Bee sold half of the bonds for $782,500 plus accrued interest. Journalize the following transactions: a. Purchase of bonds on August 1, Year 1. b. Receipt of first semiannual interest payment on December 31, Year 1. c. The sale of the bonds on March 1, Year 2. If an amount box does not require an entry, leave it blank.

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