Question
Entries for bond (held-to-maturity) investments The following bond investment transactions were completed by Starks Company: Jan. 31 Purchased 30, $1,000 government bonds at 100 plus
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Entries for bond (held-to-maturity) investments
The following bond investment transactions were completed by Starks Company:
Jan. 31 Purchased 30, $1,000 government bonds at 100 plus accrued interest of $150 (1 month). The bonds pay 6% annual interest on July 1 and January 1. July 1 Received semiannual interest on bond investment. Aug. 30 Sold 12, $1,000 bonds at 97 plus $120 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 fill in the blank a6e516ffcfed00b_2 fill in the blank a6e516ffcfed00b_3 fill in the blank a6e516ffcfed00b_5 fill in the blank a6e516ffcfed00b_6 fill in the blank a6e516ffcfed00b_8 fill in the blank a6e516ffcfed00b_9 July 1 fill in the blank a6e516ffcfed00b_11 fill in the blank a6e516ffcfed00b_12 fill in the blank a6e516ffcfed00b_14 fill in the blank a6e516ffcfed00b_15 fill in the blank a6e516ffcfed00b_17 fill in the blank a6e516ffcfed00b_18 Aug. 30 fill in the blank a6e516ffcfed00b_20 fill in the blank a6e516ffcfed00b_21 fill in the blank a6e516ffcfed00b_23 fill in the blank a6e516ffcfed00b_24 fill in the blank a6e516ffcfed00b_26 fill in the blank a6e516ffcfed00b_27 fill in the blank a6e516ffcfed00b_29 fill in the blank a6e516ffcfed00b_30
b. Journalize 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.
Dec. 31 fill in the blank 1fca5c05d05f04a_2 fill in the blank 1fca5c05d05f04a_3 fill in the blank 1fca5c05d05f04a_5 fill in the blank 1fca5c05d05f04a_6
c. Journalize the receipt of $18,000 at the bonds maturity on July 1. If an amount box does not require an entry, leave it blank.
July. 1 fill in the blank 2a8433fcafa1073_2 fill in the blank 2a8433fcafa1073_3 fill in the blank 2a8433fcafa1073_5 fill in the blank 2a8433fcafa1073_6
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Entries for bond (held-to-maturity) investments
The following bond investment transactions were completed by Starks Company:
| Jan. 31 | Purchased 30, $1,000 government bonds at 100 plus accrued interest of $150 (1 month). The bonds pay 6% annual interest on July 1 and January 1. |
| July 1 | Received semiannual interest on bond investment. |
| Aug. 30 | Sold 12, $1,000 bonds at 97 plus $120 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 | fill in the blank a6e516ffcfed00b_2 | fill in the blank a6e516ffcfed00b_3 | |
| fill in the blank a6e516ffcfed00b_5 | fill in the blank a6e516ffcfed00b_6 | ||
| fill in the blank a6e516ffcfed00b_8 | fill in the blank a6e516ffcfed00b_9 | ||
| July 1 | fill in the blank a6e516ffcfed00b_11 | fill in the blank a6e516ffcfed00b_12 | |
| fill in the blank a6e516ffcfed00b_14 | fill in the blank a6e516ffcfed00b_15 | ||
| fill in the blank a6e516ffcfed00b_17 | fill in the blank a6e516ffcfed00b_18 | ||
| Aug. 30 | fill in the blank a6e516ffcfed00b_20 | fill in the blank a6e516ffcfed00b_21 | |
| fill in the blank a6e516ffcfed00b_23 | fill in the blank a6e516ffcfed00b_24 | ||
| fill in the blank a6e516ffcfed00b_26 | fill in the blank a6e516ffcfed00b_27 | ||
| fill in the blank a6e516ffcfed00b_29 | fill in the blank a6e516ffcfed00b_30 |
b. Journalize 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.
| Dec. 31 | fill in the blank 1fca5c05d05f04a_2 | fill in the blank 1fca5c05d05f04a_3 | |
| fill in the blank 1fca5c05d05f04a_5 | fill in the blank 1fca5c05d05f04a_6 |
c. Journalize the receipt of $18,000 at the bonds maturity on July 1. If an amount box does not require an entry, leave it blank.
| July. 1 | fill in the blank 2a8433fcafa1073_2 | fill in the blank 2a8433fcafa1073_3 | |
| fill in the blank 2a8433fcafa1073_5 | fill in the blank 2a8433fcafa1073_6 |
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Active Auditing A Practical Guide To Lean And Agile Auditing
Authors: Prescott Coleman, Sandy Kasahara
1st Edition
1092839305, 978-1092839303
