c) McGee Company had the following transactions pertaining to debt

investments:

Jan. 1 Purchased 30 8%, Tk.1,000 Kelon Co. bonds for Tk.30,000 cash

plus brokerage fees of Tk.700. Interest is payable semiannually on July 1

and January 1.

July 1 Received semiannual interest on Kelon Co. bonds.

July 1 Sold 10 kelon Co. bonds for Tk.16,000 less Tk.600 brokerage fees.

Required:

(i) Journalize the transactions.

(ii) Prepare the adjusting entry for the accrual of interest at December 31.

d) At December 31, 2019, Abdul Salam Co. reported the following information

on its balance sheet:

Accounts receivable

Tk.30,00,000

Less Allowance for doubtful accounts

65,000

During 2020, the company had the following transactions related to

receivables:

(1) Sales on account

Tk.,50,00,000

(2) Collections of accounts receivable

42,00,000

(3) Write-offs of account receivable deemed uncollectible

75,000

(4) Recovery of bad debts previously written off as uncollectible

28,000

Required:

(i)

Prepare the journal entries to record each of these five

transactions. Assume that no cash discounts were taken on the

collections of accounts receivable.

(ii)

Enter the January 1, 2020, balances in Accounts Receivable and

Allowance for Doubtful Accounts, post the entries to the two

accounts (use T accounts), and determine the balances.