Question

Please explain how you got each #/answer if you can, it really helps.

Cullumber Corporation had the following transactions pertaining to debt investments.

1.		Purchased 45 8%, $1,500 Leeds Co. bonds for $67,500 cash. Interest is payable annually on January 1, 2020.
2.		Accrued interest on Leeds Co. bonds on December 31, 2020.
3.		Received interest on Leeds Co. bonds on January 1, 2021.
4.		Sold 30 Leeds Co. bonds for $55,688 on January 1, 2021.

Cullumber Corporation had the following transactions pertaining to debt investments. 1. Purchased 45 8%, $1,500 Leeds Co. bonds for $67,500 cash. Interest is payable annually on January 1, 2020. 2. Accrued interest on Leeds Co. bonds on December 31, 2020. 3. Received interest on Leeds Co. bonds on January 1, 2021. 4. Sold 30 Leeds Co. bonds for $55,688 on January 1, 2021. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No ent journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.) No. Date Account Titles and Explanation Debit Credit Jan. 1, 2020 Dec 31, 2020 3. Jan. 1, 2021 4. Jan. 1, 2021 v

Answer 1

solution Date - Debit Credit Jan 1, 2020 67500 Accounts / Explanations Investment in Bondę [ 45 Bonds x 1500 Cash [Being Leed co. Bonds purchased] 67500 Dec 31, 2020 5400 Interest Recervabler [ 67500 X 8!/0] Interest revenue | [Being Interst accowed on bonds] 5400 5400 Jan 1, 2021 5400 cash Interest recelvables [67500 X 8%] [ Being Interest Received] cash Gain on sale of Bonde Jan 1, 2021 55688 10688 45000 Investment in Bonde [ 30 bonds x 1500] [Being 30 bonds sold for 55688]