Question
patterson company had the following transactions pertaining to debt securities held as an investment. Jan 1 Purchased 90, 6%, 1$1,000 Marks Company bonds for $90,000
patterson company had the following transactions pertaining to debt securities held as an investment.
Jan 1 Purchased 90, 6%, 1$1,000 Marks Company bonds for $90,000 cash plus brokerage fees of $950. Interest is payable semiannually on July 1 and January 1.
July 1 Received semiannual interest on Marks Company bonds.
Oct 1 Sold 45 Marks Company bonds for $46,400 plus accured interest less $500 brokerage fees.
Instructions
(a) Journalize the transactions
(b) prepare the adjusting entry for the accrual of interest on December 31.
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Information Technology Auditing An Evolving Agenda
Authors: Jagdish Pathak
1st Edition
3642060579, 978-3642060571
