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Entries for bond (heid-to-maturity) investments The following bond investment transactions were completed by Starks Company: Jan. 31 July 1 Purchased 45, $1,000 government bonds
Entries for bond (heid-to-maturity) investments The following bond investment transactions were completed by Starks Company: Jan. 31 July 1 Purchased 45, $1,000 government bonds at 100 plus accrued interest of $225 (1 month). The bonds pay 6% annual interest on July 1 and January 1. Received semiannual interest on bond investment. Aug. 30 Sold 1, $1,000 bonds at 96 plus $180 accrued interest (2 months). a. Journalize the entries for these transactions. Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Jan. 31 July 1 Aug. 30 b. Joumalize the December 31 adjusting entry for semiannual interest earned on the bonds. Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank Previous Next G
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