Torres Investments acquired $260,800 of Murphy Corp., 9% bonds at their face amount on October 1, Year 1. The bonds pay interest on October 1 and April 1. On April 1, Year 2, Torres sold $72,400 of Murphy Corp. bonds at 102. Journalize the entries to record the following: Do not round interim calculations. Round final answers to nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. a. The initial acquisition of the Murphy Corp. bonds on October 1, Year 1. Year 1, Oct. 1 fill in the blank 71bd05f45f95fbb_2 fill in the blank 71bd05f45f95fbb_4 b. The adjusting entry for three months of accrued interest earned on the Murphy Corp. bonds on December 31, Year 1. Year 1, Dec. 31 fill in the blank 96c81afb2ff8068_2 fill in the blank 96c81afb2ff8068_4 c. The receipt of semiannual interest on April 1, Year 2. Year 2, Apr. 1 fill in the blank d8c23f06e01002a_2 fill in the blank d8c23f06e01002a_3 fill in the blank d8c23f06e01002a_5 fill in the blank d8c23f06e01002a_6 fill in the blank d8c23f06e01002a_8 fill in the blank d8c23f06e01002a_9 d. The sale of $72,400 of Murphy Corp. bonds on April 1, Year 2, at 102. Year 2, Apr. 1 fill in the blank c68af10a0fe3038_2 fill in the blank c68af10a0fe3038_3 fill in the blank c68af10a0fe3038_5 fill in the blank c68af10a0fe3038_6

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Torres Investments acquired $260,800 of Murphy Corp., 9% bonds at their face amount on October 1, Year 1. The bonds pay interest on October 1 and April 1. On April 1, Year 2, Torres sold $72,400 of Murphy Corp. bonds at 102.

Journalize the entries to record the following:

Do not round interim calculations. Round final answers to nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank.

a. The initial acquisition of the Murphy Corp. bonds on October 1, Year 1.

Year 1, Oct. 1		fill in the blank 71bd05f45f95fbb_2
			fill in the blank 71bd05f45f95fbb_4

b. The adjusting entry for three months of accrued interest earned on the Murphy Corp. bonds on December 31, Year 1.

Year 1, Dec. 31		fill in the blank 96c81afb2ff8068_2
			fill in the blank 96c81afb2ff8068_4

c. The receipt of semiannual interest on April 1, Year 2.

Year 2, Apr. 1	fill in the blank d8c23f06e01002a_2	fill in the blank d8c23f06e01002a_3
	fill in the blank d8c23f06e01002a_5	fill in the blank d8c23f06e01002a_6
	fill in the blank d8c23f06e01002a_8	fill in the blank d8c23f06e01002a_9

d. The sale of $72,400 of Murphy Corp. bonds on April 1, Year 2, at 102.

Year 2, Apr. 1	fill in the blank c68af10a0fe3038_2	fill in the blank c68af10a0fe3038_3
	fill in the blank c68af10a0fe3038_5	fill in the blank c68af10a0fe3038_6

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