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Cullumber Farms is a grower of hybrid seed corn for Bend Genetics Corporation. It has had two exceptionally good years and has elected to invest
Cullumber Farms is a grower of hybrid seed corn for Bend Genetics Corporation. It has had two exceptionally good years and has elected to invest its excess funds in bonds. The following selected transactions relate to bonds acquired as an investment by Cullumber Farms, whose fiscal year ends on December 31. 2019 Purchased at par $565000 of Dover Corporation 10-year, 7% bonds dated January 1, 2019, directly from the issuing corporation. Received the semiannual interest on the Dover bonds. Accrual of interest at year-end on the Dover bonds. Jan. 1 July 1 Dec. 31 Assume that all intervening transactions and adjustments have been properly recorded and the number of bonds owned has not changed from December 31, 2019, to December 31,2021 2022 Jan. 1 Jan. 1 July 1 Dec. 31 Received the semiannual interest on the Dover bonds. Sold $325000 of Dover bonds at 112. Received the semiannual interest on the Dover bonds. Accrual of interest at year-end on the Dover bonds. Journalize the listed transactions for the years 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Debit Date Account Titles and Explanation Credit #|| Debt Investments Jan. 1 565,000 Cash 565,000 July 1Cash 19,775 Interest Revenue 19,775 Dec. 31 | | Interest Receivable 19,775 Interest Revenue 19,775 Journalize the listed transactions for the years 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit To record interest) To record sale of bonds)
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