Kalyagin Investments acquired $245,200 of Jerris Corp., 5% bonds at their face a
ID: 2565164 • Letter: K
Question
Kalyagin Investments acquired $245,200 of Jerris Corp., 5% 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 $112,000 of Jerris Corp. bonds at 101.
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):
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 $112,000 of Jerris Corp. bonds, at 101 Cengage = false Show Me How Calculator Print Item Entries tor Invectments in bonds, Interest, and sale ot bonds 1. PE 13-1.B PF 13-7 H 3. PE 13 3.B 4 PL 134.D 5. PE 13-5.B 6 PE 13-6 7. Ex13-1.Ago Kalyagin Investments accured $245,200 of Jerns Corp., 5% bonds at their face 3mount un cctober 1, 210- thre bunds pay interest on October 1 and April 1. On Apri 1, 201/, Kalyagin sld $112,00 uf Jei Cp, bonds at 101 ournatze the antnes to record the transacions, Ree to the Chart ofAccounts for eact woring oct ts. Be sure to ecerhe year as part ofthe dat JournoNzc the crtrcs to nocord the folicwing .cfer to the Cha. of /ccounts fer exactoring of account tit ce and oc suro to cnter the year as pJrt cf the date): 123125 Oct.Inltal acquiakian ct the lerrs Cop. honds Dec. 31 Adus ina antry tor threa morths at accrued interest 9. Ex 13-3Ao 45.200.00 carned on tha eris Corp. bonds 06500 2017 065.00 11. EX13-5.ALGO 12. Ex 13-6 A 13. EX 138 4 Fr 13-11 Alo Apr. 1.2017 . 6.13000 1 Sale o$112,000 r lais Carp. bonda, a: 101 1065.00 , 1 Cesh 11312000 15 FX 13-25 A1 CO imvertment-Jermnis Corp. Bend 10.89100 Noxt Progress: 8/16 items ssignment Score: 91 All work saved. Save and Fxit Submit Assinnmant for Grading O Type herc to scarcihExplanation / Answer
Solution:
Journal Entries
Date
Account Titles and Explanation
Debit
Credit
Oct.1, 2016
Investment - Jerris Corp. Bonds
$245,200
Cash
$245,200
(Bonds Investment acquired recorded)
Dec.31, 2016
Interest Receivable (245,200*5%*3/12)
$3,065
Interest Revenue
$3,065
(Recorded Interest Revenue for 3 months)
April.1, 2017
Cash
$6,130
Interest Receivable
$3,065
Interest Revenue
(3 months from Jan to March 17 because Oct-Dec 2016 already recorded and related to the Year 2016)
$3,065
(Receipt of Semi Annual Interest on bonds recorded)
Apr.1, 2017
Cash (Sale Proceeds 112,000*101%)
$113,120
Investment - Jerris Corp. Bonds (Face Value)
$112,000
Profit on Sale of Investment
$1,120
(Recorded Sale proceeds of face value 112,000 bonds at 101)
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Date
Account Titles and Explanation
Debit
Credit
Oct.1, 2016
Investment - Jerris Corp. Bonds
$245,200
Cash
$245,200
(Bonds Investment acquired recorded)
Dec.31, 2016
Interest Receivable (245,200*5%*3/12)
$3,065
Interest Revenue
$3,065
(Recorded Interest Revenue for 3 months)
April.1, 2017
Cash
$6,130
Interest Receivable
$3,065
Interest Revenue
(3 months from Jan to March 17 because Oct-Dec 2016 already recorded and related to the Year 2016)
$3,065
(Receipt of Semi Annual Interest on bonds recorded)
Apr.1, 2017
Cash (Sale Proceeds 112,000*101%)
$113,120
Investment - Jerris Corp. Bonds (Face Value)
$112,000
Profit on Sale of Investment
$1,120
(Recorded Sale proceeds of face value 112,000 bonds at 101)
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