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I need some help trying to figure out these problems. Any help and explanations would be greatly appreciated! B1-6 Bond (Held-to-Maturity) Investments Obj. la Journalize
I need some help trying to figure out these problems. Any help and explanations would be greatly appreciated!
B1-6 Bond (Held-to-Maturity) Investments Obj. la Journalize the entries to record the following selected held-to-maturity investment transactions for Marr Products: a. Purchased for cash $180,000 of Hotline Inc. 5% bonds at 100 plus accrued interest of $1,500. b. Received first semiannual interest payment. c. Sold $90,000 of the bonds at 102 plus accrued interest of $750. Answer d. Received face value of remaining bonds at their maturity. Demopoulos Company acquired $150,000 of Marimar Co. 6% bonds on May 1 at their face amount as a held- to-maturity investment. Interest is paid semiannually on May 1 and November 1. On November 1, Demopoulos Company sold $55,000 of the bonds for 98. Journalize the entries to record the following: a. The initial acquisition of the bonds on May 1. b. The semiannual interest received on November 1. c. The sale of the bonds on November 1. d. The accrual of interest on December 31. B1-8 Bond (Held-to-Maturity) Investments Obj. la Bula Investments purchased $240,000 of Effenstein Corp. 8% bonds at their face amount on October 1, 20Y1, as a held-to-maturity investment. The bonds pay interest on October 1 and April 1. On April 1, 20Y2, Bula sold $90,000 of Effenstein Corp. bonds at 102. Journalize the entries to record the following selected transactions: a. The initial purchase of the Effenstein Corp. bonds on October 1, 20Y1. b. The adjusting entry for 3 months of accrued interest earned on the following selected transactions: a. The initial purchase of the Effenstein Corp. bonds on October 1, 20Y1. b. The adjusting entry for 3 months of accrued interest earned on the Effenstein Corp. bonds on December 31, 20Y1. Answer c. The receipt of semiannual interest on April 1, 20Y2. d. The sale of $90,000 of Effenstein Corp. bonds on April 1, 20Y2, at 102. e. The receipt of the face value of the remaining bonds at their maturity on October 1, 20Y8 Step by Step Solution
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