Question

make journal entries

(3) JOURNALIZE THE FOLLOWING ENTRIES (2MARKS EACH) 33,000 ABC CO. PRUCHASED (LENDED MONEY) TREASURY BONDS WITH THE FOLLOWING DETAILS INT PMT DATES: 29TH FEB.30 TH AUG BUYING WORTH OF BOND DATE OF BUYING THE BOND COUPON RATE SEMI ANNUAL PMIS 5 YEAR BOND 30TH APRIL 1096 INTEREST PMT DATES 30TH JAN 30TH JULY CALCULATE SEMI ANNUAL INTEREST PAYMENTS ANNUAL INTEREST PAYMENTS JOURNALIZE THE FOLLOWING ENTRIES с JOTH APRIL PURCHASE OF BOND D 30TH JULY FIRST INTEREST REVEARNED E DECIST END OF FINANCIAL YEAR SISTJAN SECOND INTEREST REVEARNED 31ST JAN 1.2 SOLD BONDS AT WITH COMMISSION 5500 CALCULATE. SELLING PRICE (EXCLUDING COMMISSION BISTJAN JOURNALIZE SALE OF INVESTMENT SHARES ARE THR SHARESSOLDATALOSS OR GAIN?

Answer 1

A. SemiAnnual Interest Payments
=	33000*10% * 1/2
=	1650
B. Annual Interest Payments
=	1650*2
=	3300
C. journal Entries for Purchase of Bond
Date	Account Title	Debit	Credit
30-Apr	Investment in Bonds A/c	33000
	Cash a/c		33000
	(Entry made for Purchase of Bond)
d. journal Entries for First Interest Earned
30-Jul	Interest Receivable A/c	1650
	Interest Revenue A/c		1650
	(Entry Made for Interest Earned)
e. Journal Entry At Year End
31-Dec	Interest Receivable A/c	1375
	Interest Revenue A/c		1375
	(Entry Made for Interest Earned at year End)
F Journal Entry for Second Interest Earned
30-Jan	Interest Receivable A/c	1650
	Interest Revenue A/c		1650
	(Entry Made for Interest Earned)