Question
Kalyagin Investments acquired $220,000 of Jerris Corp., 7% bonds at their face amount on October 1, 2016. The bonds pay interest on October 1 and
Kalyagin Investments acquired $220,000 of Jerris Corp., 7% bonds at their face amount on October 1, 2016. The bonds pay interest on October 1 and April 1. On April 1, 2017, Kalyagin sold $80,000 of Jerris Corp. bonds at 103. Journalize the entries to record the following (refer to the Chart of Accounts for exact wording of account titles and be sure to enter the year as part of the date):
2016 | ||
Oct. | 1 | Initial acquisition of the Jerris Corp. bonds |
Dec. | 31 | Adjusting entry for three months of accrued interest earned on the Jerris Corp. bonds |
2017 | ||
Apr. | 1 | Receipt of semiannual interest |
1 | Sale of $80,000 of Jerris Corp. bonds, at 103 |
Chart of Accounts
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Journal Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles. Be sure to enter the year as part of the date. PAGE 10 JOURNAL
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