Question

On May 1, 20Y6, Dean Company purchased $200,00

Question 1 pt Bond Investment Transactions Journalire 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. 9% bonds at 100 plus accrued interest of $1,620, paying interest semiannually. b. Received first semiannual interest payment. c. Sold $72,000 of the bonds at 103 plus accrued interest of $820. Save and Exit Submit A nment for You must finish your in-progress quiz take before you can submit your assignment Cengage Learning Cengage Technical Support

Answer 1

a	Investments-Iceline Inc. Bonds	108000
	Interest Receivable	1620
	Cash		109620
b	Cash	4860		=108000*9%/2
	Interest Receivable		1620
	Interest Revenue		3240
c	Cash	74980		=(72000*1.03)+820
	Interest Revenue		820
	Gain on sale of investments		2160
	Investments-Iceline Inc. Bonds		72000