Bond (held-to-maturity) investments Journalize the entries to record the following selected held-to-maturity investment transactions for Beacon Trust: If an amount box does not require an entry, leave it blank. a. Purchased for cash $420,000 of Vasquez City 6% bonds at 100 plus accrued interest of $6,300. Investments-Vasquez City Bonds Interest Receivable Cash Feedback b. Received first semiannual interest payment. Cash Check My Work a. Record the investment at face value. Interest that is accrued on the date of purchase must be recorded as well. Interest Receivable Interest Revenue Feedback 420,000 12,600 6,300 6,300 426,300 6,300 Check My Work h. Record the interest revenue as earned. Bond Principal x Interest Rate x Time = Total Interest. 4

Bond (held-to-maturity) investments Journalize the entries to record the following selected held-to-maturity investment transactions for Beacon Trust: If an amount box does not require an entry, leave it blank. a. Purchased for cash $420,000 of Vasquez City 6% bonds at 100 plus accrued interest of $6,300. Investments-Vasquez City Bonds 420,000 Interest Receivable 6,300 Cash 426,300 Feedback Check My Work a. Record the investment at face value. Interest that is accrued on the date of purchase must be recorded as well. b. Received first semiannual interest payment. Cash Interest Receivable Interest Revenue 12,600 6,300 6,300 Feedback Check My Work h. Record the interest revenue as earned. Bond Principal x Interest Rate v Time Total Interest