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Gonzalez Company acquired $135,600 of Walker Co., 7% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November
Gonzalez Company acquired $135,600 of Walker Co., 7% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Gonzalez Company sold $52,800 of the bonds for 99.
Journalize entries to record the following in Year 1:
For a compound transaction, if an amount box does not require an entry, leave it blank.
a. The initial acquisition of the bonds on May 1.
May 1 | |||
b. The semiannual interest received on November 1.
Nov. 1 | |||
c. The sale of the bonds on November 1.
Nov. 1 | |||
d. The accrual of $966 interest on December 31.
Dec. 31 | |||
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