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Transactions for Bond (Held-to-Maturity) Investments Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, 20Y5. The following are bond
Transactions for Bond (Held-to-Maturity) Investments
Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, 20Y5. The following are bond (held-to-maturity) transactions by Rekya Mart Inc., which has a fiscal year ending on December 31:
20Y5 | |
Apr. 1. | Purchased $60,000 of Smoke Bay 4%, 10-year bonds at their face amount plus accrued interest of $400. The bonds pay interest semiannually on February 1 and August 1. |
May 16. | Purchased $106,000 of Geotherma Co. 6%, 12-year bonds at their face amount plus accrued interest of $265. The bonds pay interest semiannually on May 1 and November 1. |
Aug. 1. | Received semiannual interest on the Smoke Bay bonds. |
Sept. 1. | Sold $24,000 of Smoke Bay bonds at 104 plus accrued interest of $80. |
Nov. 1. | Received semiannual interest on the Geotherma Co. bonds. |
Dec. 31 | Accrued interest on the Smoke Bay bonds. |
Dec. 31 | Accrued interest on the Geotherma Co. bonds. |
20Y6 | |
Feb. 1. | Received semiannual interest on the Smoke Bay bonds. |
May 1. | Received semiannual interest on the Geotherma Co. bonds. |
Required:
1. Journalize the entries to record these transactions. If an amount box does not require an entry, leave it blank. Do not round your intermediate calculations and round final answers to the nearest dollar. Use the nearest whole month for the interest period.
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