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On January 1, 2024, Richetti Ltd. purchased $232,000 of 11%, 10-year bonds at face value (100) with the intention of selling the bonds early the next year. Richetti receives interest semi-annually on July 1 and January 1. At December 31, 2024, which is the company's fiscal year end, the bonds were trading in the market at 98. Assume that Richetti sold the bonds for $227,360 on January 2, 2025. Record the collection of the interest and the sale of the bonds. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 2, 2025 Cash Trading Investments No Entry No Entry Debit 227360 Credit 2273€

On January 1, 2024, Richetti Ltd. purchased $232,000 of 11%, 10-year bonds at face value (100) with the intention of selling the bonds early the next year. Richetti receives interest semi-annually on July 1 and January 1. At December 31, 2024, which is the company's fiscal year end, the bonds were trading in the market at 98. Assume that Richetti sold the bonds for $227,360 on January 2, 2025. Record the collection of the interest and the sale of the bonds. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 2, 2025 Cash Trading Investments No Entry No Entry Debit 227360 Credit 2273€

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2024, Richetti Ltd. purchased $232,000 of 11%, 10-year bonds at face value (100) with the intention of selling the bonds early the next year. Richetti receives interest semi-annually on July 1 and January 1. At December 31, 2024, which is the company's fiscal year end, the bonds were trading in the market at 98. Assume that Richetti sold the bonds for $227,360 on January 2, 2025. Record the collection of the interest and the sale of the bonds. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 2, 2025 Cash Trading Investments No Entry No Entry Debit 227360 Credit 22736
Transcribed Image Text:On January 1, 2024, Richetti Ltd. purchased $232,000 of 11%, 10-year bonds at face value (100) with the intention of selling the bonds early the next year. Richetti receives interest semi-annually on July 1 and January 1. At December 31, 2024, which is the company's fiscal year end, the bonds were trading in the market at 98. Assume that Richetti sold the bonds for $227,360 on January 2, 2025. Record the collection of the interest and the sale of the bonds. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 2, 2025 Cash Trading Investments No Entry No Entry Debit 227360 Credit 22736
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