Question

Moore Farms is a grower of hybrid seed corn for DeKalb Genetics Corporation. It has had two exceptionally good years and has elected to invest its excess funds in bonds.
The following selected transactions relate to bonds acquired as an investment by Moore
Farms, whose fiscal year ends on December 31.
2014
Jan. 1 Purchased at par $600,000 of Vandiver Corporation 10-year, 7% bonds dated January 1, 2014, directly from the issuing corporation.
July 1 Received the semiannual interest on the Vandiver bonds.
Dec 31 Accrual of interest at year-end on the Vandiver bonds.
Assume that all intervening transactions and adjustments have been properly recorded and the number of bonds owned has not changed from December 31, 2014, to December 31, 2016.
2017
Jan. 1 Received the semiannual interest on the Vandiver bonds.
Jan. 1 Sold $300,000 of Vandiver bonds at 110.
July 1 Received the semiannual interest on the Vandiver bonds.
Dec. 31 Accrual of interest at year-end on the Vandiver bonds.
Instructions
Journalize the listed transactions for the years 2014 and 2017.



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  • CreatedApril 07, 2014
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