Question

eBook Show Me How Calculator Print Item 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 $60,000 of Iceline, Inc. 6% bonds at 100 plus accrued interest of $600, paying interest semiannually. b. Received first semiannual Interest payment. Accounting numeric field c. Sold $40,000 of the bonds at 102 plus accrued interest of $300

Answer 1

Answer
	Account Title	Debit	Credit
(A)	Investment -In.Bonds	$     60,000
	Interest Receivable	$          600
	To Cash		$     60,600
(B)	Cash	$       1,800
	To Interest Receivable		$          600
	To Interest Revenue		$       1,200
( C)	Cash [(102/100) * 40000 + 300]	$     41,100
	To Interest Revenue		$          300
	To Gain on sale of investment		$          800
	To investment - in bonds		$     40,000