Question
Glaser Company had the following transactions pertaining to debt securities held as a short-term investment. 2017 Jan. 1 Purchased 40, 8%, $1,000 Adcock Company bonds
- Glaser Company had the following transactions pertaining to debt securities held as a short-term investment. 2017
Jan. 1 Purchased 40, 8%, $1,000 Adcock Company bonds for $40,000 cash. Interest is payable annually on January 1.
Dec. 31 Accrued the annual interest on Adcock Company bonds.
2018
Jan. 1 Received the accrued interest and sold 30 Adcock Company bonds for $32,000.
Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest on December 31, 2017.
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Advanced Financial Accounting
Authors: Richard Baker, Valdean Lembke, Thomas King, Cynthia Jeffrey
8th Edition
73526916, 978-0073526911
