Question
Can anyone show me how to journalize this step by step? I am having a hard time doing a few of these problems for my
Can anyone show me how to journalize this step by step? I am having a hard time doing a few of these problems for my homework. Thanks,
Bocelli Co. purchased $135,000 of 6%, 20-year Sanz County bonds on May 11, Year 1, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, Year 1, Bocelli Co. sold $28,800 of the Sanz County bonds at 96 plus $144 accrued interest less a $85 brokerage commission.
Provide journal entries for the following (refer to the Chart of Accounts for exact wording of account titles):
a. The purchase of the bonds on May 11 plus 40 days of accrued interest; assume a 360-day year.
b. Semiannual interest on October 1.
c. Sale of the bonds on October 31.
d. Adjusting entry for accrued interest of $1,593 on December 31, Year 1.
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