Banaba Company had the following transactions in bond investment held as trading for the current year. Mar.1     Purchased 1,000 P1,000, 12% bonds of Lander Company at 90 excluding accrued interest. Interest is payable on February 1 and August 1. Apr.  1    Purchased 3,000, P1,000, 12% bonds of Narita Corporation at 92 plus accrued interest. Interest is payable March 1 and September 1. Oct. 1     Sold 500 of Narita bonds at 102 excluding accrued interest. Dec. 1    Sold all of the Lander bonds at 95 plus accrued interest        31    The market value of the Narita bonds is 90. Required;       Prepare journal entries to record the transactions including receipt and accrued interest.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Banaba Company had the following transactions in bond investment held as trading for the current year.

Mar.1     Purchased 1,000 P1,000, 12% bonds of Lander Company at 90 excluding accrued interest. Interest is payable on February 1 and August 1.

Apr.  1    Purchased 3,000, P1,000, 12% bonds of Narita Corporation at 92 plus accrued interest. Interest is payable March 1 and September 1.

Oct. 1     Sold 500 of Narita bonds at 102 excluding accrued interest.

Dec. 1    Sold all of the Lander bonds at 95 plus accrued interest

       31    The market value of the Narita bonds is 90.

Required;      

Prepare journal entries to record the transactions including receipt and accrued interest.

 

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