Sandhill Corporation had the following transactions pertaining to debt investments. 1. Purchased 40 Leeds Co. 9 % bonds (each with a face value of $1,000) for $40,000 cash. Interest is payable annually on January 1, 2022. 2. Accrued interest on Leeds Co. bonds on December 31, 2022. 3. Received interest on Leeds Co. bonds on January 1, 2023. 4. Sold 30 Leeds Co. bonds for $33,300 on January 1, 2023. Journalize the transactions. (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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Jan. 1, 2022 く Debt Investments Cash Dec. 31, 2022 V Interest Receivable Interest Revenue Jan. 1, 2023 V Cash Interest Receivable Jan. 1, 2023 V Cash Debt Investments Gain on Sale of Debt Investments Debit Credit

Sandhill Corporation had the following transactions pertaining to debt investments. 1. Purchased 40 Leeds Co. 9 % bonds (each with a face value of $1,000) for $40,000 cash. Interest is payable annually on January 1, 2022. 2. Accrued interest on Leeds Co. bonds on December 31, 2022. 3. Received interest on Leeds Co. bonds on January 1, 2023. 4. Sold 30 Leeds Co. bonds for $33,300 on January 1, 2023. Journalize the transactions. (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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Jan. 1, 2022 く Debt Investments Cash Dec. 31, 2022 V Interest Receivable Interest Revenue Jan. 1, 2023 V Cash Interest Receivable Jan. 1, 2023 V Cash Debt Investments Gain on Sale of Debt Investments Debit Credit

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 3PB

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