Floyd Limited had the following transactions pertaining to debt investments.
Jan. 1, 2017 Purchased 50 8%, £1,000 Petal Co. bonds for £50,000 cash. Interest is payable annually on January 1.
Dec. 31, 2017 Accrued interest on the Petal Co. bonds.
Jan. 1, 2018 Received interest on Petal Co. bonds.
Jan. 1, 2018 Sold 30 Petal Co. bonds for £33,500.
Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest at December 31, 2018.