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.
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Advanced Financial Accounting
Authors: Richard Lewis, David Pendrill
6th Edition
0273638335, 978-0273638339
