Exercise 16-2 Jenek Corporation had the following transactions pertaining to deb

Question

Exercise 16-2 Jenek Corporation had the following transactions pertaining to debt investments. 1. Purchased 25 8%, $1,150 Leeds Co. bonds for $2 2. Accrued interest on Leeds Co. bonds on December 31, 2017. 3. Received interest on Leeds Co. bonds on January 1, 2018. 4. Sold 15 Leeds Co. bonds for $19,550 on January 1, 2018. 8,750 cash. Interest is payable annually on January 1, 2017. Dournalize the transactions. (Credit account titles are automatically amount is entered. Do not indent manually. If no entry is required, select "N the account titles and enter o for the amounts, Record journal entries in the order presented in the problem. Round answers to o decimal places, e.g. s.a Round answers to 0 decimal places, e.g. 5,2 No. Date Account Titles and Explanation Debit Credit IST OF ACCOLUNTS

Explanation / Answer

Date Account Debit credit 1 Debt investment 28750 cash 28750 31 dec 2017 Interest receivable 2300 Interest revenue [28750*.08] 2300 jan 1 2018 cash 2300 Interest receivable 2300 jan 12018 cash 19550 Gain on sale of debt investment 2300 Debt investment [15*1150] 17250

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