Horten Company had the following transactions pertaining to debt securities held as a short-term investment. Jan. 1
Question:
Jan. 1 Purchased 30, 8%, $1,000 Edwards Company bonds for $30,000 cash plus brokerage fees of $600. Interest is payable semiannually on July 1 and January 1.
July 1 Received semiannual interest on Edwards Company bonds.
Oct. 1 Sold 15 Edwards Company bonds for $16,000 plus accrued interest less $300 brokerage fees.
Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest on December 31.
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Date Particular Dr Cr a 1Jan Edwards Company bonds investment 36000 Cash 36000 1Jul Ca...View the full answer
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Related Book For 
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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