On March 1, 2021, Navy Corporation used excess cash to purchase U.S. Treasury bonds for $109,000...
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On March 1, 2021, Navy Corporation used excess cash to purchase U.S. Treasury bonds for $109,000 plus accrued interest. The bonds were purchased at face value. The appropriate interest rate is 6%. Interest on these bonds is payable on January 1 and July 1 of each year. Navy's investment is accounted for as held-to-maturity. The fair value of the Treasury bonds is $110,000 at year-end. Required: Prepare the appropriate journal entries to record the transactions for the year, including any year-end adjustments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 Record the purchase of U.S Treasury bonds for cash and accrued interest. Note: Enter debits before credits. Date General Journal Debit Credit March 01 Interest receivable Investment in bonds Cash Record entry Clear entry View general journal > On March 1, 2021, Navy Corporation used excess cash to purchase U.S. Treasury bonds for $109,000 plus accrued interest. The bonds were purchased at face value. The appropriate interest rate is 6%. Interest on these bonds is payable on January 1 and July 1 of each year. Navy's investment is accounted for as held-to-maturity. The fair value of the Treasury bonds is $110,000 at year-end. Required: Prepare the appropriate journal entries to record the transactions for the year, including any year-end adjustments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 Record the purchase of U.S Treasury bonds for cash and accrued interest. Note: Enter debits before credits. Date General Journal Debit Credit March 01 Interest receivable Investment in bonds Cash Record entry Clear entry View general journal >
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Here are the journal entries to record the transactions for the year 1 Record the purchase of US Tre... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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