Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can anyone answer this question Jan Stevens Corporation during the year ended October 31, 2021, had the following transactions for money-market instruments purchased to earn

can anyone answer this question image text in transcribed
image text in transcribed
image text in transcribed
Jan Stevens Corporation during the year ended October 31, 2021, had the following transactions for money-market instruments purchased to earn interest: 2 Purchased a 120-day, $40,000 treasury bill maturing on May 1 for $39,760. May 1 The treasury bill matured Aug 1 Invested $65,000 in a money-market fund. Aug 31 Received notification that $163 of interest had been earned and added to the fund. Sept. 30 Received notification that $163 of interest had been earned and added to the fund. Oct. 1 Purchased a 90-day, 2.4%, $30,000 treasury bill for $29,821. Oct. 15 Cashed the money-market fund and received $65,408. Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem) Date Account Titles and Explanation Debit Credit 1 (To record purchase of investment.) > (To record maturity of treasury bill investment.) MacBook Air TUTELLT UUESTY TESTER (To record purchase of investment.) > w (To accrue interest revenue.) MAD

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Brenda Mallouk

2nd Edition

017640709X, 978-0176407094

More Books

Students also viewed these Accounting questions