Brief Exercise 12-1 Ownbey Corporation purchased debt investments for $65,000 on

Question

Brief Exercise 12-1

Ownbey Corporation purchased debt investments for $65,000 on January 1, 2017. On July 1, 2017, Ownbey received cash interest of $3,800.

Journalize the purchase and the receipt of interest. Assume that no interest has been accrued. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

Date

Account Titles and Explanation

Debit

Credit

Jan. 1July 1

Jan. 1July 1

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Jan 1 Debt investment 65000 Cash 65000 (To record purchase of investment) July 1 Cash 3800 Interest revenue 3800 (To record interest revenue)

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