false Show Me How Calculator Entries for Investment in Bonds, Interest, and Sale

Question

false Show Me How Calculator Entries for Investment in Bonds, Interest, and Sale of Bonds amount. Interest is paid semiannually on May 1 and November 1. On Gonzalez Company acquired S186,600 or waker Co, 0% bonds on May 1 at the face November 1, Gonzalez Company sold $43,200 of the bonds for 98. ournelize entries to record the following in Year 1: a compound transaction, if an amount box does not require an entry, leave it blank a. The iniiel acquisition of the bonds on May 1 b. The semiannual interest received on November 1 Nov. 1 The sale of the bonds on November 1 Now. 1 d. The accrual of $1,434 interest on December 31 11:48 0 SAMSUNG

Explanation / Answer

Ans. Entries: Date Particulars Debit Credit 1-May Investment 186600 Cash 186600 Nov.1 Cash 5598 Interst revenue (186600*6%*6/12) 5598 (6 months = 1may - 1nov.) Nov.1 Cash (43200/100*98) 42336 Loss on sale of bonds (43200-42336) 864 Investment 43200 (Par value of the bonds = 100) Dec.31 Interest Receivables [(186600-43200)*6%*2/12] 1434 Interest Revenue 1434 (2 Months = 1Nov. - 31 Dec.)

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