Odlaw ltd, had the following transactions relating to debt investments: Jan. 1 Purchased 50, 1,000, 12% Clinton
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Jan. 1 Purchased 50, £1,000, 12% Clinton Company bonds for £50,000 plus broker’s fees of £1,500. Interest is payable semiannually on January 1 and July 1.
July 1 Received semiannual interest from Clinton Company bonds.
July 1 Sold 30 Clinton Company bonds for £30,000, less £800 broker’s fees.
(a) Journalize the transactions
(b) Prepare the adjusting entry for the accrual of interest on December 31.
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Related Book For
Financial accounting
ISBN: 978-1118285909
IFRS Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
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