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What are the correct answers for the red boxes? 20Y3 Apr. 1 Purchased $100,000 of Welch Co. 6%, 15-year bonds at their face amount plus
What are the correct answers for the red boxes?
20Y3 Apr. 1 Purchased $100,000 of Welch Co. 6%, 15-year bonds at their face amount plus accrued interest of $500. The bonds pay interest semiannually on March 1 and September 1. Purchased $210,000 of Bailey 4%, 10-year bonds at their face amount plus accrued interest of $700. The bonds pay interest semiannually on May 1 and November 1. June 1 Sept. 1 Received semiannual interest on the Welch Co. bonds. 30 Sold $40,000 of Welch Co. bonds at 97 plus accrued interest of $200. Nov. 1 Received semiannual interest on the Bailey bonds. Dec. 31 Accrued interest on the Welch Co. bonds. 31 Accrued interest on the Bailey bonds. Journal Shaded cells have feedback. TCCTCOLINCOLT 16 Interest Revenue 3,500.00 1 17 Adjusting Entries 18 Dec. 31 Interest Receivable 1,200.00 1 19 Interest Revenue 1,200.00 1 20 Dec. 31 Interest Receivable 1,400.00 21 Interest Revenue 1,400.00 f Record these transactions on page 11 20Y4 Mar. 1 Received semiannual interest on the Welch Co. bonds. May 1 Received semiannual interest on the Bailey bonds. Required: 1. Journalize the entries to record these transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Assume 360 days a year. Do not round your intermediate calculations and round final answers to the nearest dollar. Journal Shaded cells have feedback. ACCOUNTING EQUATION JOURNAL Score: 71/75 DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Mar. 1 Cash 1,800.00 2 Interest Receivable 1,200.00 3 Interest Revenue 600.00 1 4 May 1 Cash 4,200.00 1 5 Interest Receivable 1,400.00 + Interest Revenue 2,800.00 1Step by Step Solution
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