Question
Assume that on October 1, 2015, Jerome, Inc., paid $100,000 plus a $1,500 brokerage fee to buy Potter's 8 percent, two-year bonds with a $100,000
Assume that on October 1, 2015, Jerome, Inc., paid $100,000 plus a $1,500 brokerage fee to buy Potter's 8 percent, two-year bonds with a $100,000 par value. The bonds pay interest semiannually on March 31 and September 30. The company's year-end is on December 31. Jerome intends to hold the bonds until they mature on September 30, 2017. Prepare the October 1, 2015, journal entry for Jerome by selecting the account names and dollar amounts.
Part B:
Assume that on October 1, 2015, Jerome, Inc., paid $100,000 plus a $1,500 brokerage fee to buy Potter's 8 percent, two-year bonds with a $100,000 par value. The bonds pay interest semiannually on March 31 and September 30. The company's year-end is on December 31. Jerome intends to hold the bonds until they mature on September 30, 2017. Prepare the December 31, 2015, adjusting entry for Jerome by selecting the account names and dollar amounts.
Part C:
On October 1, 2015, Jerome, Inc., paid $100,000 plus a $1,500 brokerage fee to buy Potter's 8 percent, two-year bonds with a $100,000 par value. The bonds pay interest semiannually on March 31 and September 30. The company's year-end is on December 31. Jerome intends to hold the bonds until they mature on September 30, 2017. Prepare the March 31, 2016, journal entry for Jerome by selecting the account names and dollar amounts.
Part D:
On October 1, 2015, Jerome, Inc., paid $100,000 plus a $1,500 brokerage fee to buy Potter's 9 percent, two-year bonds with a $100,000 par value. The bonds pay interest semiannually on March 31 and September 30. The company's year-end is on December 31. Jerome intends to hold the bonds until they mature on September 30, 2017. Prepare the September 30, 2017, journal entry for Jerome by selecting the account names and dollar amounts from the drop-down menus. Assume that the semiannual interest payment on September 30, 2017, is already recorded.
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