Entries for investments in bonds, interest, and sale of bonds Kalyagin Investments acquired $150,000 of Jerris Corp.,
Question:
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.
AppendixLO1
Step by Step Answer:
Corporate Financial Accounting
ISBN: 9781337398176
15th Edition
Authors: Carl Warren, Jefferson Jones