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Metlock Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. Feb. 1, 2025 Sharapova Company common stock, $120 par, 240 shares $40, 800 April 1 U.S. government bonds, 12%, due April 1, 2035, interest payable April 1 and October 1,96 bonds of $1,000 par each 96,000 July 1 McGrath Company 12% bonds, par $50, 100, dated March 1, 2025, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2045 54, 108 Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2025, using the straight-line method. (List all debit entries

Metlock Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. Feb. 1, 2025 Sharapova Company common stock, $120 par, 240 shares $40, 800 April 1 U.S. government bonds, 12%, due April 1, 2035, interest payable April 1 and October 1,96 bonds of $1,000 par each 96,000 July 1 McGrath Company 12% bonds, par $50, 100, dated March 1, 2025, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2045 54, 108 Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2025, using the straight-line method. (List all debit entries

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Metlock Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. Feb. 1, 2025 Sharapova Company common stock, $120 par, 240 shares $40, 800 April 1 U.S. government bonds, 12%, due April 1, 2035, interest payable April 1 and October 1, 96 bonds of $1,000 par each 96,000 July 1 McGrath Company 12% bonds, par $50, 100, dated March 1, 2025, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2045 54, 108 Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2025, using the straight-line method. (List all debit entries before credit entries. 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. Round answers to 0 decimal places, e.8. 1, 225.) Date Account Titles and Explanation Debit Credit Dec. '31, Interest Receivable 2025 Debt Investments
Transcribed Image Text:Metlock Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. Feb. 1, 2025 Sharapova Company common stock, $120 par, 240 shares $40, 800 April 1 U.S. government bonds, 12%, due April 1, 2035, interest payable April 1 and October 1, 96 bonds of $1,000 par each 96,000 July 1 McGrath Company 12% bonds, par $50, 100, dated March 1, 2025, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2045 54, 108 Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2025, using the straight-line method. (List all debit entries before credit entries. 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. Round answers to 0 decimal places, e.8. 1, 225.) Date Account Titles and Explanation Debit Credit Dec. '31, Interest Receivable 2025 Debt Investments
Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2025, using the straight-line method. (List all debit entries before credit entries. 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 O for the amounts. Round answers to O decimal places, e.g. 1,225.) Date Account Titles and Explanation Debit Credit Dec. ' 31, Interest Receivable 2025 Debt Investments Interest Revenue
Transcribed Image Text:Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2025, using the straight-line method. (List all debit entries before credit entries. 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 O for the amounts. Round answers to O decimal places, e.g. 1,225.) Date Account Titles and Explanation Debit Credit Dec. ' 31, Interest Receivable 2025 Debt Investments Interest Revenue
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