Question

eBook Show Me How Calculator Print tem Bond Investment Transactions Journalize the entries to record the following selected bond investment transactions for Starks Products: For a compound transaction, if an amount box does not require an entry, leave it blank a. Purchased for cash $108,000 of Iceline, Inc. 7% bonds at 100 plus accrued interest of $1,260, paying interest semiannually. b. Received first semiannual interest payment. c. Sold 172,000 of the bonds at 102 plus accrued interest of $550.

Answer 1

Event Credit $ $ Debit 108,000 1,260 $ 109,260 $ 3,780 General Journal Investments-Iceline, Inc. Interest Receivable Cash Cash ($108,000 * 7% * 6/12) Interest Receivable Interest Revenue Cash ($72,000 * 1.02 + $550) Interest Revenue Gain on Sale of Investments ($72,000 * 0.02) Investments-Iceline, Inc. 1,260 2,520 73,990 550 1,440 72,000