Question
On January 1, 2020, Teal Company purchased $260,000, 6% bonds of Aguirre Co. for $238,911. The bonds were purchased to yield 8% interest. Interest is
On January 1, 2020, Teal Company purchased $260,000, 6% bonds of Aguirre Co. for $238,911. The bonds were purchased to yield 8% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025. Teal Company uses the effective-interest method to amortize discount or premium. On January 1, 2022, Teal Company sold the bonds for $240,370 after receiving interest to meet its liquidity needs.
(a)
New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct.
Prepare the journal entry to record the purchase of bonds on January 1. Assume that the bonds are classified as available-for-sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
| Date | Account Titles and Explanation | Debit | Credit |
| Jan. 1, 2020 | |||
I need help on the title for my debit journal entry
238,911
Cash. 238,911
Attempted "debt Investments" but it is wrong
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
