Question1 Jenek Corporation had the following transactions pertaining to debt in

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Question1 Jenek Corporation had the following transactions pertaining to debt investments. Purchased 55 996, $1,900 Leeds Co. bonds for $104,500 cash. Interest is payable annually on January 1, 2017 Accrued interest on Leeds Co. bonds on December 31, 2017. 1. 2. 3. Received interest on Leeds Co. bonds on January 1, 2018. 4. Sold 33 Leeds Co. bonds for $71,060 on January 1, 2018. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5,275) No. Account Titles and Explanation Debit Credit 2. 3. 4. SHOW LIST OF ACCOUNTS LINK TO TEXT

Explanation / Answer

Journal entry :

Date accounts & Explanation debit credit Jan 1, 2017 Debt investment 104500      Cash 104500 Dec 31, 2017 Interest receivable 9405    Interest revenue(104500*9%) 9405 Jan 1,2018 Cash 9405     Interest receivable 9405 Jan 1,2018 Cash 71060      Debt investment (33*1900) 62700      Gain on sale of debt investment 8360

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