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1. On October 1, 2009, Marcus Corporation purchased $20,000 of 6% bonds of Rober

ID: 2389255 • Letter: 1

Question

1. On October 1, 2009, Marcus Corporation purchased $20,000 of 6% bonds of Roberts Corporation, due in 8 1/4 years. The bonds were purchased at a price of $17,561 plus interest of $300 accrued from July 1, 2009, the date of the last semi-annual interest payments. Journalize the purchase of the bonds plus interest.

2. On January 2, Todd Company acquired 40% of the outstanding stock of McGuire Company for $205,000. For the year ending, December 31, McGuire earned income of $48,000 and paid dividends of $14,000.
Prepare the entries for Todd Company for the purchase of the stock, share of McGuire income and dividends received from McGuire.

3. Fortune Corporation

Explanation / Answer

Oct. 1 Investment in Roberts Corp. Bonds 17,561

                Interest receivable 300 Cash 17,861

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