Question

 Entries for resentments in Bonde, Interest, and sale of Bonds Kalyagin Investments acquired $150,000 of Jerris Corp., 8% bonds at their face amount on October 1, 2012. The bonds p 2013, Kalyagin sold $50,000 of Jervis bonds at 102 person O Berland Journalize the entries to record the following under the cost method: If an amount box does not require an entry, leave blank 

a. The initial acquisition of the Jernis Corp. bonds on October 1, 2012, 2012 Oct. 1 v e dress Corp. Bonds 150,000 150.000 Feedback a Record the investment at face value December 31, 2012 

b. The adjusting entry for three months of accrued interest canned on the Vernis Corp. bonds 2012 Dec. 31 Interest Receivable Interest Previous All work saved

c. The receipt of semiannual interest on April 1, 2013. 2083 Apr. 1 Cash Interest Receivable Interest Revenue Feedback c. Record the interest revenue as earned. Bond Principal x Interest Rate x Time - Total Interest Remember to consider any receive the 

d. The sale of $50,000 of Jerris Corp. bonds on April 1, 2043, at 102. 20Y3 Apr. 1 Cash Gain on Sale of investments Investments - Jerris Corp. Bonds book Check My Work

Answer 1

solution Date Account title Debit Credit (2) 2012 oct1 150000 Investment in bonde cash 150000 Amount Invested in bonds] 3000 6) 20Y2 Dec 31 3000 Interest receivable Interest Revenue (150000 X 8•j.X 312] 6000 (c) 2013 Apr1 3000 cash Interest revenue [ 50000 Z87-13] - Interest receivable 3000 d) poY3 Aspi 51000 cash (50000 X 102/100) Gain on sale of Bondę Investment in Bonde 1000 50000