Question
Pleases figure out the last two questions On Jan 1 07 SSS buys 100 US Treasury Bonds (face value $1000 each) for the Trading Portfolio.
Pleases figure out the last two questions
On Jan 1 07 SSS buys 100 US Treasury Bonds (face value $1000 each) for the Trading Portfolio. The bonds carry an annual interest coupon of 4% paid semiannually Jan 1 and July 1. Journalize the purchase.
01/01/07
Debt Investments $100000
Cash $100000
On July 1 the bonds pay interest. Journalize the receipt of the interest payment.
07/01
Cash $2000
Interest Revenue $2000
On Aug 1, SSS sells 50 of the bonds at 98
08/01
Cash $49000
Loss on sale of Debt Investment $1000
Debt investment $50000
On December 31 SSS makes an adjusting entry for accrual of interest to be received January 1 2008. Show the adjustment for the accrual of interest.
12/31
Interest Receivable $4000
Interest Revenue $4000
On Dec 31, the bonds are trading at 97. What fair value adjustment, if any, needs to be made?
How will the bonds be shown on the Balance Sheet?
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The Volunteers Audit Guide For Churches And Other Non Profits A Step By Step Workbook For Internal Reviews Of Non Profit Organizations
Authors: Edd Breeden
1st Edition
1079582401, 978-1079582406
