Foren Corporation had the following transactions pertaining to debt investments. Jan 1: Purchased 50 8%, $1,000 Choate Co. bonds for $50,000 cash plus brokerage fees of $900. Interest is payable semiannually on July 1 and January 1. July 1: Received semiannual interest on Choate Co. bonds. July 1: Sold 30 Choate Co. bonds for $34,000 less $500 brokerage fees. a. Journalize the transactions. b. Prepare the adjusting entry for the accrual of interest at December 31.
Foren Corporation had the following transactions pertaining to debt investments. Jan 1: Purchased 50 8%, $1,000 Choate Co. bonds for $50,000 cash plus brokerage fees of $900. Interest is payable semiannually on July 1 and January 1. July 1: Received semiannual interest on Choate Co. bonds. July 1: Sold 30 Choate Co. bonds for $34,000 less $500 brokerage fees. a. Journalize the transactions. b. Prepare the adjusting entry for the accrual of interest at December 31.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 7MCQ
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