Problem 3

Torres Corporation had the following transactions pertaining to debt investment:

Jan. 1, 2014 Purchased 110 Abongwa Co. 10%, $1,000 bonds for $110,000 cash. Interest is payable 110,000 annually on January 1.

Dec. 31, 2014 Accrued interest on Abongwa Co. bonds.

Jan. 1, 2015 Received interest on Abongwa Co. bonds.

July 1, 2015 Sold 30 Abongwa Co. bonds for $35,000 cash.

Instructions: Journalize the transactions. GENERAL JOURNAL DATE LP Debit Credit