Question
On August 1, 2018, Crane Company acquired $380000 face value 8% bonds of Kasnic Corporation at 105 plus accrued interest. The bonds were dated May
On August 1, 2018, Crane Company acquired $380000 face value 8% bonds of Kasnic Corporation at 105 plus accrued interest. The bonds were dated May 1, 2018, and mature on April 30, 2023, with interest payable each October 31 and April 30. The bonds will be held to maturity. What entry should Crane make to record the purchase of the bonds on August 1, 2018?
Debt Investments 406600 Cash 406600
Debt Investments 399000 Interest Revenue 7600 Cash 406600
Debt Investments 406600 Interest Revenue 7600 Cash 399000
Debt Investments 380000 Premium on Bonds 26600 Cash 406600
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Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel
3rd Canadian Edition
0470836792, 978-0470836798
