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Selected debt investment transactions for Easy A Inc., a retail business, are listed below. Easy A Inc. has a fiscal year ending on December 31. Year 1: Feb. 1 Bought $35,000 of 6%, XYZ Co. 12-year bonds at their face amount plus accrued interest of $700. The bonds pay interest semiannually on June 1 and December 1. May 1 Bought $200,000 of Simple Tree 5%, 20-year bonds at their face amount plus accrued interest of $2,500. The bonds pay interest semiannually on March 1 and September 1. Jun. 1 Received semiannual interest on the XYZ Co. bonds. Sept. 1 Received semiannual interest on the Simple Tree bonds. Oct. 1 Sold $15,000 of Simple Tree bonds at 102% plus accrued interest of $63. Dec. 1 Received semiannual interest on the XYZ Co. bonds. Dec. 31 Accrued $3,135 interest on the Simple Tree bonds. Accrued $175 interest on the XYZ Co. bonds. Year 2: Mar. 1 Received semiannual interest on the Simple Tree bonds. Jun. 1 Received semiannual interest on the XYZ Co. bonds. Sept. 1 Received semiannual interest on the Simple Tree bonds. Instructions: Journalize the selected transactions for Easy A Inc.

Selected debt investment transactions for Easy A Inc., a retail business, are listed below. Easy A Inc. has a fiscal year ending on December 31. Year 1: Feb. 1 Bought $35,000 of 6%, XYZ Co. 12-year bonds at their face amount plus accrued interest of $700. The bonds pay interest semiannually on June 1 and December 1. May 1 Bought $200,000 of Simple Tree 5%, 20-year bonds at their face amount plus accrued interest of $2,500. The bonds pay interest semiannually on March 1 and September 1. Jun. 1 Received semiannual interest on the XYZ Co. bonds. Sept. 1 Received semiannual interest on the Simple Tree bonds. Oct. 1 Sold $15,000 of Simple Tree bonds at 102% plus accrued interest of $63. Dec. 1 Received semiannual interest on the XYZ Co. bonds. Dec. 31 Accrued $3,135 interest on the Simple Tree bonds. Accrued $175 interest on the XYZ Co. bonds. Year 2: Mar. 1 Received semiannual interest on the Simple Tree bonds. Jun. 1 Received semiannual interest on the XYZ Co. bonds. Sept. 1 Received semiannual interest on the Simple Tree bonds. Instructions: Journalize the selected transactions for Easy A Inc.

Financial Accounting
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 6PA: Saverin, Inc. produces and sells outdoor equipment. On July 1, 2016, Saverin, Inc. issued 62,500,000...
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Selected debt investment transactions for Easy A Inc., a retail business, are listed below. Easy A Inc. has a fiscal year ending on December 31. Year 1: Feb. 1 Bought $35,000 of 6%, XYZ Co. 12-year bonds at their face amount plus accrued interest of $700. The bonds pay interest semiannually on June 1 and December 1. May 1 Bought $200,000 of Simple Tree 5%, 20-year bonds at their face amount plus accrued interest of $2,500. The bonds pay interest semiannually on March 1 and September 1. Jun. 1 Received semiannual interest on the XYZ Co. bonds. Sept. 1 Received semiannual interest on the Simple Tree bonds. Oct. 1 Sold $15,000 of Simple Tree bonds at 102% plus accrued interest of $63. Dec. 1 Received semiannual interest on the XYZ Co. bonds. Dec. 31 Accrued $3,135 interest on the Simple Tree bonds. Accrued $175 interest on the XYZ Co. bonds. Year 2: Mar. 1 Received semiannual interest on the Simple Tree bonds. Jun. 1 Received semiannual interest on the XYZ Co. bonds. Sept. 1 Received semiannual interest on the Simple Tree bonds. Instructions: Journalize the selected transactions for Easy A Inc.
Transcribed Image Text:Selected debt investment transactions for Easy A Inc., a retail business, are listed below. Easy A Inc. has a fiscal year ending on December 31. Year 1: Feb. 1 Bought $35,000 of 6%, XYZ Co. 12-year bonds at their face amount plus accrued interest of $700. The bonds pay interest semiannually on June 1 and December 1. May 1 Bought $200,000 of Simple Tree 5%, 20-year bonds at their face amount plus accrued interest of $2,500. The bonds pay interest semiannually on March 1 and September 1. Jun. 1 Received semiannual interest on the XYZ Co. bonds. Sept. 1 Received semiannual interest on the Simple Tree bonds. Oct. 1 Sold $15,000 of Simple Tree bonds at 102% plus accrued interest of $63. Dec. 1 Received semiannual interest on the XYZ Co. bonds. Dec. 31 Accrued $3,135 interest on the Simple Tree bonds. Accrued $175 interest on the XYZ Co. bonds. Year 2: Mar. 1 Received semiannual interest on the Simple Tree bonds. Jun. 1 Received semiannual interest on the XYZ Co. bonds. Sept. 1 Received semiannual interest on the Simple Tree bonds. Instructions: Journalize the selected transactions for Easy A Inc.
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