On January 1, 2016 he $90,000 maturity walue bonds sold for face value Glosford

Question

On January 1, 2016 he $90,000 maturity walue bonds sold for face value Glosford Corporation inends to hold the bonds unti maturity Joumalicze the transactions related to Glosfond Corporation's investment in Small Town bonds duing 2016 (Record debits frst then credits Select the explanation on the last line of the journal entry table ) Date Debit Jan. 1, 206 Next, joumaline Glosfond Corporation's receipt of ieterest on June 30, 2016. Date Accounts and Explanation Jun 30, 2016 Now joumalize Glosford Corporation's receigt of interest on December 31, 2016 Accounts and Explanation Creda Dec 31, 2016 Choose from any list or enter any number in the input fields and then continue to the next question

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Jan 1,2016 Bond investment 90000 Cash 90000 (To record bond investment) June 30,2016 Cash (90000*8%*6/12) 3600 Interest revenue 3600 (To record interest received) Dec 31,2016 Cash 3600 Interest revenue 3600 (To record interest received)

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