Question
- On 2/1, the company purchased 10% bonds of Gibbons Co. having a par value of $300,000 at 100 plus accrued interest. Interest in payable
- On 2/1, the company purchased 10% bonds of Gibbons Co. having a par value of $300,000 at 100 plus accrued interest. Interest in payable April 1 and October 1. 2-On April 1, semiannual interest is received. 3-On July 1, 9% bonds of Sampson Inc, were purchsed. These bonds with a par value of $200,000 were pourchased at 100 plus accrued interest. Interest dates are June and December 1. 4-On September 1, bonds with a par value of $60,000, purchased on Feb 1, are sold at 99 plus accrued interest. 5-On October 1, semiannual is received. 6-On decemeber 1, semiannual is received. 7-On December 31, the fair vaule of bonds purchased Feb 1 and July 1 are 95 and 93, respectively. Instructions: a-Prepare any journal entries you consider necessary, including year-end entries (December 31), assuming these aer available-for-sale securities.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started