Question 1 Flynn Company purchased 75 Rinehart Company 1096, 10-year, $1,590 bon

Question

Question 1 Flynn Company purchased 75 Rinehart Company 1096, 10-year, $1,590 bonds on January 1, 2017, for $119,250. The bonds pay interest annually on January 1. On January 1, 2018, after receipt of interest, Flynn Company sold 45 of the bonds for $65,588. Prepare the journal entries to record the transactions described above. (Round answers to O decimal places, e.g 15,250. 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.) Date Account Titles and Explanation Credit To record receipt of interest) Jan. 1, 2018 To record sale of bonds) SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: SIMILAR EXERCISE Question Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER

Explanation / Answer

1-Jan Debt investments 119250          Cash 119250 31-Dec Interest receivable 11925 =75*1590*10%         Interest revenue 11925 1-Jan Cash 11925        Interest receivable 11925 1-Jan Cash 65588 Loss on sale of Debt investments 5962       Debt investments 71550 =119250/75*45

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