Question
The company purchased the following instruments: Feb 1, 2022 Purchased at 101 a $ 15,000, 5% 5-year Laurentian Bank of Canada bond. Interest is paid
The company purchased the following instruments:
Feb 1, 2022
Purchased at 101 a $ 15,000, 5% 5-year Laurentian Bank of Canada bond. Interest is paid semi-annually. The market rate of interest was 3.5%. The bonds were purchased to trade.
Aug 1, 2022
Received interest on the bond.
Aug 2, 2022
Sold the bond at 99.
Required:
Record the above transactions.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Feb 1 Investment in bonds Ac Dr 15000 Premium on bonds Ac Dr 150 Cash Ac Cr 15150 Aug 1 Cash Ac Dr 3...
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Step: 2
Step: 3
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
13th Edition
8120335643, 136126634, 978-0136126638
