Entries for investments in bonds, interest, and sale of bonds Kalyagin Investments acquired $150,000 of Jerris Corp.,

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Entries for investments in bonds, interest, and sale of bonds Kalyagin Investments acquired $150,000 of Jerris Corp., 8% bonds at their face amount on October 1, 20Y2. The bonds pay interest on October 1 and April 1. On April 1, 20Y3, Kalyagin sold $50,000 of Jerris bonds at 102.

Journalize the entries to record the following under the cost method:

a. The initial acquisition of the Jerris Corp. bonds on October 1, 20Y2.

b. The adjusting entry for three months of accrued interest earned on the Jerris Corp. bonds on December 31, 20Y2.

c. The receipt of semiannual interest on April 1, 20Y3.

d. The sale of $50,000 of Jerris Corp. bonds on April 1, 20Y3, at 102.

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Corporate Financial Accounting

ISBN: 9781337398176

15th Edition

Authors: Carl Warren, Jefferson Jones

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