Crane Company purchased 85 Rinehart Company 8%, 10-year, $1,980 bonds on January 1, 2020, for $168,300....
Crane Company purchased 85 Rinehart Company 8%, 10-year, $1,980 bonds on January 1, 2020, for $168,300. The bonds pay interest annually on January 1. On January 1, 2021, after receipt of interest, Crane Company sold 55 of the bonds for $92,565.
Prepare the journal entries to record the transactions described above.
Homework Answers
The stated transactions would involve recording of following entries
| Date | Accounts title | Debit | Credit |
| 01-Jan-20 | Inventment in Bonds | $168,300 | |
| Cash | $168,300 | ||
| (Bonds purchased) | |||
| 31-Dec-20 | Interest receivables | $13,464 | |
| Interest Revenue [168300 x 8%] | $13,464 | ||
| (Interest accrued) | |||
| 01-Jan-21 | Cash | $13,464 | |
| Interest receivables | $13,464 | ||
| (Interest received in cash) | |||
| 01-Jan-21 | Cash | $92,565 | |
| Loss on sale of Bonds Investment [108900 - 92565] | $16,335 | ||
| Investment in Bonds [55 x $1980] | $108,900 | ||
| (Investment sold) |
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Crane Company purchased 85 Rinehart Company 8%, 10-year, $1,980
bonds on January 1, 2020, for $168,300....
Flynn Company purchased 85 Rinehart Company 8%, 10-year, $1,980 bonds on January 1, 2017, for $168,300....
Flynn Company purchased 85 Rinehart Company 8%, 10-year, $1,980 bonds on January 1, 2017, for $168,300. The bonds pay interest annually on January 1. On January 1, 2018, after receipt of interest, Flynn Company sold 55 of the bonds for $92,565. Prepare the journal entries to record the transactions described above. (Round answers to o decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No...
Flynn Company purchased 70 Rinehart Company 10%, 10-year, $1,980 bonds on January 1, 2017, for $138,600....
Flynn Company purchased 70 Rinehart Company 10%, 10-year, $1,980
bonds on January 1, 2017, for $138,600. The bonds pay interest
annually on January 1. On January 1, 2018, after receipt of
interest, Flynn Company sold 40 of the bonds for $76,230.
Prepare the journal entries to record the transactions described
above. (Round answers to 0 decimal places, e.g. 15,250.
Credit account titles are automatically indented when amount is
entered. Do not indent manually. If no entry is required, select
"No...
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Flynn Company purchased 70 Rinehart Company 10%, 10-year, $1,980
bonds on January 1, 2017, for $138,600. The bonds pay interest
annually on January 1. On January 1, 2018, after receipt of
interest, Flynn Company sold 40 of the bonds for $76,230.
Prepare the journal entries to record the transactions described
above. (Round answers to 0 decimal places, e.g. 15,250.
Credit account titles are automatically indented when amount is
entered. Do not indent manually. If no entry is required, select
"No...
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