Kalyagin Investments acquired $233,600 of Jerris Corp., 6% bonds at their face a
ID: 2430357 • Letter: K
Question
Kalyagin Investments acquired $233,600 of Jerris Corp., 6% bonds at their face amount on October 1, 2016. The bonds pay interest on October 1 and April 1. On April 1, 2017, Kalyagin sold $111,200 of Jerris Corp. bonds at 105.
Journalize the entries to record the following (refer to the Chart of Accounts for exact wording of account titles and be sure to enter the year as part of the date):
Chart of Accounts
Journal
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Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles. Be sure to enter the year as part of the date.
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PAGE 10
JOURNAL
Score: 114/125
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2016 Oct. 1 Initial acquisition of the Jerris Corp. bonds Dec. 31 Adjusting entry for three months of accrued interest earned on the Jerris Corp. bonds 2017 Apr. 1 Receipt of semiannual interest 1 Sale of $111,200 of Jerris Corp. bonds, at 105Explanation / Answer
Journal entry :
Date account and explanation debit credit Oct 1 Investments-Jerris Corp. Bonds 233600 Cash 233600 (To record investment in bonds) Dec 31 Interest receivable (233600*6%*3/12) 3504 Interest revenue 3504 (To record accured interest) Apr 1 Cash 7008 Interest receivable 3504 Interest revenue 3504 (To record interest receipt) Apr 1 Cash (111200*1.05) 116760 Gain on Sale of Investments 5560 Investments-Jerris Corp. Bonds 111200 (To record sale of bonds)Related Questions
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