Crabtree Co. purchased $60,000 of 6%, 15-year Thomas County bonds on June 20, 2014, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on May 1 and November 1. On December 1, 2014, Crabtree Co. sold $15,000 of the Thomas County bonds at 97 plus $75 accrued interest, less a $150 brokerage commission.
Provide journal entries for the following:
a. The purchase of the bonds on June 20, plus 50 days of accrued interest.
b. Semiannual interest on November 1.
c. Sale of the bonds on December 1.
d. Adjusting entry for accrued interest of $450 on December 31, 2014.

  • CreatedFebruary 28, 2014
  • Files Included
Post your question